The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 No. 1335

PART 2 U.K. Amendment of the Education (Student Loans) (Repayment) Regulations 2009

Amendment of Part 2 (provisions applicable to all repayments) U.K.

Insertion of regulations 21AA and 21AB (interest thresholds for plan 2 loans) U.K.

26.  After regulation 21A (interest rate on plan 2 loans) insert—

“Higher interest threshold for plan 2 loans

21AA.— (1) For a domestic borrower, the higher interest threshold is—

(a) £49,130 for the repayment threshold years ending on 5th April 2024 and 5th April 2025, and

(b) for each repayment threshold year ending on or after 5th April 2026, the amount rounded up to the nearest £5 (if necessary) being the product of—

(i) the amount of the higher interest threshold for the previous repayment threshold year, and

(ii) the repayment threshold variable.

(2) For an overseas borrower, the higher interest threshold is the amount rounded up to the nearest £5 (if necessary) being the product of—

(a) the higher interest threshold for a domestic borrower, and

(b) the country-specific multiplier for the overseas borrower’s country of residence.

Lower interest threshold for plan 2 loans

21AB.— (1) For a domestic borrower, the lower interest threshold is the repayment threshold for a plan 2 loan.

(2) For an overseas borrower, the lower interest threshold is the amount rounded up to the nearest £5 (if necessary) being the product of—

(a) the lower interest threshold for a domestic borrower, and

(b) the country-specific multiplier for the overseas borrower’s country of residence.”.

Commencement Information

I1 Reg. 26 in force at 6.4.2023, see reg. 2(2)