Released 09 September 2021
SI 2021/1005 provides for a temporary reduction in interest rates on student loans from 1 October 2021 to 31 December 2021.
The Education (Student Loans) (Repayment) (Amendment) (No. 3) Regulations 2021 amend the Education (Student Loans) (Repayment) Regulations 2009 (SI 2009/470), which make provision for the repayment of income-contingent student loans in England and Wales. The amendments makes provision for a temporary reduction of the interest rates on undergraduate loans specified in SI 2009/470, reg. 21A and makes similar provision in respect of postgraduate degree loans specified in reg. 21B. 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 reg. 21A or 21B for 3 consecutive months. The interest rate 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 SI 2009/470. The regulations come into force on 1 October 2021 and expire on 31 December 2021.