(This note is not part of the Regulations)
These Regulations amend the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470) (“the Principal Regulations”), which make provision for the repayment of income-contingent student loans in England and Wales. The Regulations expire on 28th February 2022.
Regulation 2(2) makes provision for a temporary reduction of the interest rates on undergraduate loans specified in regulation 21A of the Principal Regulations; regulation 2(3) makes similar provision in respect of postgraduate degree loans specified in regulation 21B of the Principal Regulations. The interest rate reduction is required because the Secretary of State has determined that the prevailing market rate has been below the interest rates specified in regulation 21A or 21B for 2 consecutive months. The interest rate reduction is for 2 months. After expiry of the Regulations, the interest rate on undergraduate loans and postgraduate degree loans will return to the rate specified in the Principal Regulations. This is the third statutory instrument reducing the interest rate over a consecutive period. Similar provision was made for the period July to September 2021 in The Education (Student Loans) (Repayment) (Amendment) (No.2) Regulations 2021 (S.I. 2021/677) and for the period October to December 2021 in The Education (Student Loans) (Repayment) (Amendment) (No.3) Regulations 2021 (S.I. 2021/1005)
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.
The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was also considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Higher Education Division, Welsh Government, Cathays Park, Cardiff CF10 3NQ.
The Explanatory Memorandum laid before Parliament is published alongside the instrument on www.legislation.gov.uk.