Regulation 74A How to calculate fixed instalment rateF1

The fixed instalment rate for a F2plan 1, 2, 3 or 5 loan is the result of the formula F3in paragraph (2) or (2A) (as the case may be)—

The formula F4applicable to a F5plan 1, 2 or 5 loan is—

The formula applicable to a plan 3 loan is—

In the F7formulae in paragraphs (2) and (2A)—

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

• “y” means the repayment threshold for the loan.

  Example F8(using the formula F9applicable to plan 1, 2 or 5 loans)
  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).