# The Education (Student Loans) (Repayment) Regulations 2009, Regulation 74A: How to calculate fixed instalment rate


(1) The fixed instalment rate for a plan 1, 2, 3 or 5 loan is the result of the formula in paragraph (2) or (2A) (as the case may be)—
(a) calculated on the 6th of April of each year, and
(b) rounded down to the nearest £1 (if necessary).
(2) The formula applicable to a plan 1, 2 or 5 loan is—
(2A) The formula applicable to a plan 3 loan is—
2x-y×0.0612
(3) In the formulae 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 (using the formula applicable 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).

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Source: https://www.legislation.gov.uk/uksi/2009/470/regulation/74A (the official version)
Page: https://openlegislation.uk/education-student-loans-repayment-regulations-2009/regulation-74A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.