Regulation 74A How to calculate fixed instalment rateF1
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).
Annotations
Textual amendments
- F1
Reg. 74A inserted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 58
- F2
Words in reg. 74A(1) substituted (6.4.2024) by The Education (Student Loans) (Repayment) (Amendment) (No. 3) Regulations 2023 (S.I. 2023/1184), regs. 1(3), 4(3)(a)
- F3
Words in reg. 74A(1) inserted (1.6.2023) by The Education (Student Finance) (Miscellaneous Amendments) Regulations 2023 (S.I. 2023/521), regs. 1(1), 2(4)(a)
- F4
Words in reg. 74A(2) inserted (1.6.2023) by The Education (Student Finance) (Miscellaneous Amendments) Regulations 2023 (S.I. 2023/521), regs. 1(1), 2(4)(b)
- F5
Words in reg. 74A(2) substituted (6.4.2024) by The Education (Student Loans) (Repayment) (Amendment) (No. 3) Regulations 2023 (S.I. 2023/1184), regs. 1(3), 4(3)(b)
- F6
Reg. 74A(2A) inserted (1.6.2023) by The Education (Student Finance) (Miscellaneous Amendments) Regulations 2023 (S.I. 2023/521), regs. 1(1), 2(4)(c)
- F7
Words in reg. 74A(3) substituted (1.6.2023) by The Education (Student Finance) (Miscellaneous Amendments) Regulations 2023 (S.I. 2023/521), regs. 1(1), 2(4)(d)
- F8
Words in reg. 74A(3) inserted (1.6.2023) by The Education (Student Finance) (Miscellaneous Amendments) Regulations 2023 (S.I. 2023/521), regs. 1(1), 2(4)(e)
- F9
Words in reg. 74A substituted (6.4.2024) by The Education (Student Loans) (Repayment) (Amendment) (No. 3) Regulations 2023 (S.I. 2023/1184), regs. 1(3), 4(3)(c)
Notes on Part 5
Textual amendments
- F1
Words in Pt. 5 heading inserted (6.4.2023) by The Education (Student Loans) (Repayment) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/1335), regs. 2(2), 54
