The Education (Student Loans) (Repayment) (Amendment) (No. 2) Regulations 2021
Citation, commencement and expiry1.
(1)
These Regulations may be cited as the Education (Student Loans) (Repayment) (Amendment) (No. 2) Regulations 2021 and come into force on 1st July 2021.
(2)
These Regulations expire at the end of 30 September 2021.
Amendment of the Education (Student Loans) (Repayment) Regulations 20092.
(1)
(2)
In regulation 21A (interest rate on post-2012 student loans)—
(a)
in paragraph (2), after “(2F),” insert “(2G),”;
(b)
in paragraph (2A), for “and (2C)” substitute “, (2C) and (2G)”;
(c)
in paragraph (2D), for “and (2F)” substitute “, (2F) and (2G)”;
(d)
“(2G)
The maximum annual percentage rate charge determined under paragraph (2), (2A), or (2D) is—
(a)
5.3% for the period beginning with 1 July 2021 and ending with 31 August 2021; and
(b)
4.2% for the period beginning with 1 September 2021 and ending with 30 September 2021.”;
(e)
in paragraph (4), for “During” substitute “Subject to paragraph (4A), during”;
(f)
“(4A)
The annual percentage rate charge determined under paragraph (4) is—
(a)
5.3% for the period beginning with 1 July 2021 and ending with 31 August 2021; and
(b)
4.2% for the period beginning with 1 September 2021 and ending with 30 September 2021.”.
(3)
In regulation 21B (interest rate on postgraduate degree loans)—
(a)
in paragraph (1), for “The” substitute “Subject to paragraph (1A), the”;
(b)
“(1A)
The interest rate for postgraduate degree loans determined under paragraph (1) is—
(a)
5.3% for the period beginning with 1 July 2021 and ending with 31 August 2021; and
(b)
4.2% for the period beginning with 1 September 2021 and ending with 30 September 2021.”.
These Regulations amend the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470) (“the Principal Regulations”), which make provision for the repayment of income-contingent student loans in England and Wales. The Regulations expire on 30 September 2021.
Regulation 2(2) makes provision for a temporary reduction of the interest rates on undergraduate loans specified in regulation 21A of the Principal Regulations; regulation 2(3) makes similar provision in respect of postgraduate degree loans specified in regulation 21B of the Principal Regulations. The interest rate reduction is required because the Secretary of State has determined that the prevailing market rate has been below the interest rates specified in regulation 21A or 21B for 3 consecutive months. The interest rates reduction is for 3 months. After expiry of the Regulations, the interest rate on undergraduate loans and postgraduate degree loans will return to the rate specified in the Principal Regulations.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.
The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was also considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Higher Education Division, Welsh Government, Cathays Park, Cardiff CF10 3NQ.
The Explanatory Memorandum laid before Parliament is published alongside the instrument on www.legislation.gov.uk.