Regulation 21 Interest rate on plan 1 loansF12I1

This regulation applies in relation to F2plan 1 loans.

Subject to paragraph (2), during any academic year, if the Authority determines that F3plan 1 loans will bear interest, loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with F4total charge for credit rules equal to the F5standard interest rate.

If the rate referred to in paragraph (1) exceeds the rate for the time being specified F6by article 60G(3)(d) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 F7plan 1 loans bear interest at the rate so specified.

Interest is calculated on the principal outstanding daily and is added to the principal monthly.

The index of prices to which the Authority is required by section 22(8) of the 1998 Act to have regard in prescribing the rate of interest which F8plan 1 loans bear is the F9retail price index.

The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate determined in accordance with paragraph (1) for any forthcoming academic year, subject to any variation required by virtue of paragraph (2) to be applied.

If, for any academic year, the Authority determines not to charge interest on F10plan 1 loans, the Authority must publish notice of that fact in the same manner.

If, for any academic year, the Authority publishes more than one rate of interest to apply to F11plan 1 loans, any subsequent rate so published will replace any previously published rate as the rate to apply from the date specified in the notice.