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

Insertion of regulation 74A (how to calculate fixed instalment rate) E+W

58.  After regulation 74 (repayment by fixed instalments) insert—

“How to calculate fixed instalment rate

74A.— (1) The fixed instalment rate for a plan 2, 3 or 5 loan is the result of the formula—

(a) calculated on the 6th of April of each year, and

(b) rounded down to the nearest £1 (if necessary).

(2) The formula is—

(3) In the formula—

“x” means the median salary for graduates (to the nearest £500) in the most-recent year published by the Department for Education(1);

“y” means the repayment threshold for the loan.

Example
On 6th April, £36,000 is the median salary and £27,295 is the repayment threshold. £36,000 multiplied by two is £72,000. £27,295 subtracted from £72,000 is £44,705. £44,705 multiplied by 0.09 is £4,023.45. £4,023.45 divided by 12 is £335.29. The fixed instalment rate is £335 (rounded down to the nearest £1).”.

Commencement Information

I1 Reg. 58 in force at 6.4.2023, see reg. 2(2)

(1)

The median salary for graduates is published at https://explore-education-statistics.service.gov.uk/find-statistics/graduate-labour-markets. Data published in a given calendar year is used to calculate the fixed instalment rate for the financial year beginning in the following calendar year.