The Parliamentary Under-Secretary of State for Education (Andrea Jenkyns)
I am announcing today a temporary reduction in student loan interest rates effective as of 1 September 2022.
The Government announced on 13 June 2022 that the student loan interest rate would be set at 7.3% between 1 September 2022 and 31 August 2023, in line with the forecast prevailing market rates. The Government confirmed that should the actual prevailing market rate turn out to be lower than forecast, a further cap would be implemented to reduce student loan interest rates accordingly.
I am announcing today a temporary cap to the post-2012 income contingent repayment undergraduate and postgraduate loan interest rates in line with the latest actual prevailing market rate. Subject to parliamentary approval, the cap will come into effect on 1 September 2022 and last for a period of three months.
The post-2012 undergraduate and postgraduate income contingent repayment student loan interest rates will be 6.3% between 1 September 2022 and 30 November 2022.
From 1 December 2022, the post-2012 and postgraduate income contingent repayment student loan interest rates will be 7.3%, as announced on 13 June 2022, to align with the forecast prevailing market rate. As before, should the actual prevailing market rate turn out to be lower than forecast, the post-2012 undergraduate and postgraduate income contingent repayment student loan interest rates will be reduced accordingly.
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