The Education (Student Loans) (Repayment) Regulations 2009

• Citation: S.I. 2009/470
• Sections: 121

Section 1 Citation, commencement and extent

(1) These Regulations may be cited as the Education (Student Loans) (Repayment) Regulations 2009 and, subject to paragraphs (2) and (3), come into force on 6 April 2009.

(2) Regulations 2(2), 21 and Part 6 come into force on 1 September 2009.

(3) Regulations 15(5)(f) and 18 come into force on 21 December 2009.

(4) Subject to paragraphs (5) and (6), these Regulations extend to England and Wales only.

(5) Regulation 80(3) extends to Northern Ireland.

(6) These Regulations extend to all of the United Kingdom in so far as they impose any obligation or confer any power on HMRC, an employer or a borrower in relation to repayments under Parts 3 or 4 or on any other person in relation to the retention or production of information or records.

Section 2 Revocation of previous Regulations

(1) The Instruments listed in Schedule 1 are revoked.

(2) Regulations 4(4), 93 and 94 of the Education (Student Support) (No. 2) Regulations 2008 and regulation 51 of the Assembly Learning Grants and Loans (Higher Education) (Wales) (No. 2) Regulations 2008 are revoked.

Section 3 Interpretation

(1) In these Regulations—

“the 1970 Act” means the Taxes Management Act 1970 as amended from time to time;

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“the 1998 Act” means the Teaching and Higher Education Act 1998 as amended from time to time;

“the 2003 Act” means the Income Tax (Earnings and Pensions) Act 2003 as amended from time to time;

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“ the 2000 (Scotland) Regulations ” means the Repayment of Student Loans (Scotland) Regulations 2000;

“the 2011 Support Regulations” means the Education (Student Support) Regulations 2011;

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“academic year” means the period from 1 September in any year to 31 August of the following year, regardless of whether this is, in fact, the period over which a borrower’s course runs;

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“ the Authority ” means—

in relation to a plan 1, 2 or 3 loan and subject to regulation 7—

the Welsh Ministers in the case of a loan made or deemed made by them, or

the Secretary of State in any other case;

in relation to a plan 4 loan—

the Scottish Ministers, or

a person exercising functions in accordance with arrangements made under section 73A(3) of the Education (Scotland) Act 1980;

in relation to a plan 5 loan and subject to regulation 7, the Secretary of State;

“ borrower ” means a person—

in respect of whom a student loan has been paid, and

who has not received a notice from the Authority or the loan purchaser (as the case may be) that the loan has been repaid in full or cancelled;

“ country ” includes territory;

“ country-specific multiplier ” means the country-specific multiplier calculated in accordance with regulation 8A;

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“ eligible course ” means any of the following—

a course for the Certificate of Higher Education;

a course for the Diploma of Higher Education;

a course for the Higher National Certificate or Higher National Diploma of—

the Business and Technician Education Council, or

the Scottish Qualifications Authority or Qualifications Scotland ;

a foundation degree course;

an ordinary degree course;

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“HMRC” means Her Majesty’s Revenue and Customs;

“loan purchaser” includes any person who has entered into transfer arrangements with the Authority or another loan purchaser or both and who presently owns a plan 1 loan ;

“National Insurance number” means the National Insurance number allocated within the meaning of the Social Security (Contributions) Regulations 2001 ;

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“overseas borrowers” means borrowers making or due to make repayments in accordance with Part 5;

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“ plan 1 loan ” has the meaning given in regulation 3A;

“ plan 2 loan ” has the meaning given in regulation 3B;

“ plan 3 loan ” has the meaning given in regulation 3C;

“ plan 4 loan ” has the meaning given in regulation 3D;

“ plan 5 loan ” has the meaning given in regulation 3E;

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“ principal ” has the meaning given in regulation 4(3);

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“ repayment ” has the meaning given in regulation 4(2);

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“ repayment threshold ” means the repayment threshold set out in, or calculated in accordance with, Schedule 1A;

“ repayment threshold variable ” means the repayment threshold variable calculated in accordance with regulation 8B;

“repayment threshold year” means the period from 6 April to 5 April of the following year;

“ residence ” has the same meaning as in the Taxes Acts (whether in relation to the United Kingdom or any other country);

“ retail price index ” means the RPI All Items Index published by the Office for National Statistics;

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“Secretary of State” includes any person exercising functions on behalf of a Secretary of State pursuant to section 23(4) of the 1998 Act;

“ standard interest rate ” means, in relation to a loan, the greater of—

zero, or

the percentage increase in the retail price index between the two Marches immediately before the commencement of the academic year in which the loan bears interest;

“ student loan ” means any of the following—

a plan 1 loan;

a plan 2 loan;

a plan 3 loan;

a plan 4 loan;

a plan 5 loan;

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“the Taxes Acts” has the same meaning as it has in the 1970 Act;

“tax year” –

for the purposes of Part 4 and any provision of Part 2 relating to Part 4 means the period from 6 April to 5 April of the following year;

subject to sub-paragraph (c), for the purposes of Part 3 and any provision of Part 2 relating to Part 3 means any year of assessment for the purposes of the 1970 Act;

for the purposes of regulations 36 and 40(1) and (2) means the period from 6 April to 5 April of the following year

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“ transfer arrangements ” means—

transfer arrangements made under section 1(1) or 9(1) of the Sale of Student Loans Act 2008, and

further transfer arrangements made under section 3(1) of that Act (if any);

“ transferred loan ” means a plan 1 loan in respect of which transfer arrangements are made;

“the tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure (Upper Tribunal) Rules 2008 , the Upper Tribunal; and

“Welsh Ministers” includes any person exercising functions on their behalf pursuant to section 23(4) of the 1998 Act.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3A Meaning of “plan 1 loan”

(1) A “plan 1 loan” is a loan—

(a) taken out by a person in respect of—

(i) a course the person begins on or before 31st August 2012,

(ii) a full-time course in relation to which the person has a transfer of status from another full-time course the person began on or before 31st August 2012, or

(iii) a full-time honours degree course the person begins, disregarding any intervening vacation, immediately after ceasing to attend a full-time eligible course the person began on or before 31st August 2012 and for which the person achieved a qualification, and

(b) paid under an enactment cited in any of tables 1 to 3.

Enactments applying in relation to England and Wales

Enactments applying in relation to England

Enactments applying in relation to Wales

(2) In this regulation, “ transfer of status ” means a transfer of status under—

(a) regulation 7 of the 2011 Support Regulations, or

(b) regulation 8 of any of the following—

(i) the Education (Student Support) (Wales) Regulations 2012;

(ii) the Education (Student Support) (Wales) Regulations 2013;

(iii) the Education (Student Support) (Wales) Regulations 2015;

(iv) the Education (Student Support) (Wales) Regulations 2017.

Section 3B Meaning of “plan 2 loan”

(1) A “plan 2 loan” is a loan mentioned in any of paragraphs (2) to (4).

(2) A loan—

(a) taken out by the person in respect of—

(i) a course the person begins during the period beginning on 1st September 2012 and ending at the close of 31st July 2023,

(ii) a course in relation to which the person has a variation of status from another course the person began during the period mentioned in paragraph (i), or

(iii) an honours degree course the person begins, disregarding any intervening vacation, immediately after ceasing to attend or undertake an eligible course the person began during the period mentioned in paragraph (i) and for which the person achieved a qualification, and

(b) paid under any of the following enactments—

(i) the 2011 Support Regulations;

(ii) the Further Education Loans Regulations 2012.

(3) A loan—

(a) taken out by the person in respect of a course the person begins during the period beginning on 1st September 2022 and ending at the close of 31st July 2025, and

(b) paid under the Higher Education Short Course Loans Regulations 2022 (which apply in relation to England).

(4) A loan—

(a) taken out by the person in respect of a course the person begins on or after 1st September 2012, and

(b) paid to the person under an enactment cited in the table (which apply in relation to Wales).

(5) Despite paragraphs (1), (2) and (4), a loan taken out by the person for a course mentioned in regulation 3A(1)(a)(ii) or (iii) is a plan 1 loan.

(6) In this regulation, “ variation of status ” means any of the following—

(a) a conversion of status under regulation 139B or 139C of the 2011 Support Regulations;

(b) a transfer of status under—

(i) regulation 7 or 139A of the 2011 Support Regulations;

(ii) regulation 8 of the Further Education Loans Regulations 2012.

Section 3C Meaning of “plan 3 loan”

A “plan 3 loan” is a loan paid under an enactment cited in any of tables 1 to 4.

Enactments applying in relation to England (postgraduate master’s degree)

Enactments applying in relation to Wales (postgraduate master’s degree)

Enactments applying in relation to England (postgraduate doctoral degree)

Enactments applying in relation to Wales (postgraduate doctoral degree)

Section 3D Meaning of “plan 4 loan”

A “plan 4 loan” is a loan—

(a) paid under an enactment cited in the table, and

(b) in respect of which the Scottish Ministers have determined that repayments are to be collected by HMRC under Parts 3 and 4.

Section 3E Meaning of “plan 5 loan”

(1) A “plan 5 loan” is a loan—

(a) taken out by a person in respect of a course the person begins on or after 1st August 2023, and

(b) paid under any of the following—

(i) the 2011 Support Regulations;

(ii) the Further Education Loans Regulations 2012.

(2) Despite paragraph (1), a loan taken out by a person for a course mentioned in regulation 3B(2)(a)(ii) or (iii) is a plan 2 loan.

Section 4 Application: general

(1) These Regulations apply to repayments of student loans ....

(2) The repayment of a student loan is the payment of the following to the extent they have not been repaid or paid—

(a) in relation to a plan 1, 2, 3 or 5 loan—

(i) interest payable under Part 2,

(ii) penalties, costs, expenses or charges payable under Part 2 or 5, and

(iii) the principal;

(b) in relation to a plan 4 loan—

(i) interest payable under an enactment cited in regulation 3D,

(ii) penalties, costs, expenses or charges payable under the 2000 (Scotland) Regulations, and

(iii) the principal.

(3) The principal of a student loan includes any interest, penalties, costs, expenses or charges added to the principal in accordance with any of the following—

(a) in relation to a plan 1 loan—

(i) an enactment cited in regulation 3A;

(ii) the Education (Student Loans) (Repayment) Regulations 2000;

(iii) these Regulations;

(b) in relation to a plan 4 loan—

(i) an enactment cited in regulation 3D;

(ii) the 2000 (Scotland) Regulations;

(c) in relation to any other student loan, these Regulations.

(4) In relation to a transferred loan, paragraphs (2) and (3) are subject to any provision included in its transfer arrangements.

Section 5 Wales

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Unless the Welsh Ministers have determined in relation to a loan made or deemed made by them under section 22 of the 1998 Act that repayments are to be collected by HMRC under Parts 3 and 4 and have given notice of this to the Secretary of State and the borrower, no provision of these Regulations made by virtue of section 22(5) of the 1998 Act will apply in relation to the loan .

Section 6 Scotland

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Section 7 Application to transferred loans in England and Wales

(1) Where these Regulations apply to a transferred loan—

“the Authority” means, for the purpose of those regulations listed in paragraph (2), the Secretary of State or Welsh Ministers acting on behalf of the loan purchaser (regardless of whether any person is also exercising functions on behalf of the Secretary of State or Welsh Ministers pursuant to section 23(4) of the 1998 Act); ...

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(2) The regulations referred to in paragraph (1) are: regulations 15 to 20, 22 to 27, and 73 to 79.

Section 8 Service by post or electronic communication

(1) Any notice or other document which is authorised or required to be given, served or issued under these Regulations may be sent by post or by an electronic format .

(2) In particular, any notice which the Authority may give to HMRC may be transmitted electronically, and for these purposes a notice is transmitted electronically where the content and form of a notice is sent and received by electronic media between computer systems operated by the Authority and HMRC respectively.

Section 8A How to calculate country-specific multiplier

(1) The country-specific multiplier for a country is the multiplier specified in the table in relation to its band.

(2) The band for a country is the band specified in the table in relation to its price level index value.

(3) The price level index value for a country is the quotient of—

(a) the price level value for the country in the most recent year available, and

(b) the price level value for the United Kingdom in the same year.

0.736687 is the country’s price level value and 1.058064 is the United Kingdom’s price level value.

0.736687 divided by 1.058064 is 0.696259…‬ (unrounded).

The price level index value for the country is 0.696259…, which is Band C.

The country-specific multiplier for a country in Band C is 0.6.

(4) If the price level value for a country is not published, the Authority may determine the price level value for that country by reference to a comparable country.

(5) In this regulation, “ price level value ” means the value published by the World Bank in its “Price level ratio of PPP conversion factor (GDP) to market exchange rate” world development indicator.

Section 8B How to calculate repayment threshold variable

The repayment threshold variable is, in relation to a repayment threshold year, the sum of—

(a) one, and

(b) the percentage increase, expressed as a decimal, in the retail price index between the two Marches immediately before the commencement of the previous repayment threshold year.

2.4% is the percentage increase in the retail price index.

2.4% expressed as a decimal is 0.024.

The sum of 1 and 0.024 is 1.024.

The repayment threshold variable is 1.024.

Section 8C Status of examples

(1) An example used in these Regulations—

(a) is only illustrative of the provision to which it relates, and

(b) does not limit the provision.

(2) If an example and the provision to which it relates are inconsistent, the provision prevails.

Section 9 Interpretation of Part 2

(1) In this Part—

“2006 Support Regulations” means the Education (Student Support) Regulations 2006 .

“the 2006 Welsh Regulations” means the Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2006 ;

“course start date” means 1 January, 1 April, 1 July or 1 September of the calendar year where the first day of the course is on or after 1 January and before 1 April, on or after 1 April and before 1 July, on or after 1 July and before 1 August or on or after 1 August and on or before 31 December, respectively;

“date of receipt” in relation to a repayment is to be construed in accordance with regulation 17;

“disability–related benefit” means long-term incapacity benefit or short-term incapacity benefit at the higher rate, severe disablement allowance, disability living allowance, industrial injuries benefit and disability working allowance, all payable under the Social Security Contributions and Benefits Act 1992 , personal independence payment under Part 4 of the Welfare Reform Act 2012, armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011, or the amount of any disability premium and severe disability premium included in the applicable amount in calculating the income support payable under the Income Support (General) Regulations 1987 ;

“ direct payment ” means—

in relation to a plan 1, 2, 3 or 5 loan, a payment under regulation 15(1);

in relation to a plan 4 loan, a payment under regulation 7(1) of the 2000 (Scotland) Regulations;

“ domestic borrower ” means a borrower to whom Part 3 or 4 applies;

“end-on course” means—

a full-time first degree course (other than a first degree course for the initial training of teachers) which, disregarding any intervening vacation, a student begins immediately after ceasing to attend a full-time course mentioned in paragraph (2) for which the student received or was entitled to receive an award made under the Education (Mandatory Awards) Regulations 1998 (other than an award within the meaning of the Education (Mandatory Awards) Regulations 2003 ), or financial support under an enactment cited in regulation 3A ; and

a full-time honours degree course beginning on or after 1 st September 2006 which, disregarding any intervening vacation, a student begins immediately after ceasing to attend a full-time foundation degree course and for which the student received or was entitled to receive any of the financial support referred to in paragraph (a); and

“ total charge for credit rules ” means rules made under article 60M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 for the purposes of Chapter 14A of Part 2 of that Order.

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(2) The courses mentioned in this paragraph are a course for the Diploma of Higher Education, and a course for the Higher National Diploma or Higher National Certificate of–

(a) the Business & Technician Education Council; or

(b) the Scottish Qualifications Authority or Qualifications Scotland .

Section 10 Functions of HMRC

(1) HMRC must collect repayments from borrowers (whether or not any loan of the borrower is a transferred loan) in accordance with Parts 3 and 4, and the provisions of section 1 of the 1970 Act apply for those purposes as they apply for the purposes of income tax.

(2) HMRC must, at such time and in such manner as the Treasury may direct, account for, and pay to, the Secretary of State the sums estimated by HMRC (in the manner so directed) to have been collected by it as repayments in accordance with Parts 3 and 4.

(3) HMRC must account for and pay to the Secretary of State such sums as are referred to in paragraph (2) regardless of whether the Secretary of State is entitled to retain such repayments or receives them on behalf of a loan purchaser.

(4) Payments to the Secretary of State do not include any interest, penalties or charges payable under Part 3 or 4 and HMRC will cause any such sums which it recovers to be paid, at such times and under such regulations as the Treasury may from time to time prescribe, to accounts to be entitled “The Account of Her Majesty’s Exchequer”, at the Bank of England and the sums so paid form part of the Consolidated Fund.

Section 11 Transfer of repayments due to a loan purchaser

(1) The Authority must pay to a loan purchaser at such time and in such amount as may be agreed with the loan purchaser any sums which are paid directly to the Authority in connection with transferred loans whether under this Part or Part 5.

(2) The Authority may make aggregate payments to a loan purchaser in respect of all or a number of transferred loans owned by that loan purchaser.

Section 12 Officers of Revenue and Customs

Any legal proceedings or administrative act authorised by or done for the purposes of these Regulations begun by an officer of Revenue and Customs may be continued by another officer; and any officer may act for any other division or area.

Section 13 Penalties in relation to Parts 3 and 4

(1) Section 98 of the 1970 Act (special returns etc) applies for the purposes of repayments under Parts 3 or 4 as if any reference in that section to a provision in the Table is a reference to a provision in those Parts 3 or 4 with the exception of regulations 30, 33, 60 and 61.

(2) Schedule 38 to the Finance Act 2012 (Tax Agents: Dishonest Conduct) applies for the purpose of repayments under Part 3 or 4 as it applies for the purposes of income tax.

(3) For tax years—

(a) ending on or before 5 April 2008, sections 100 (determination of penalties by officer of HMRC), 100A (provisions supplementary to section 100) and 100B (appeals against policy determinations) of the 1970 Act apply to the penalties set out in regulation 40(3) in connection with repayments under Part 3 as they apply in connection with income tax;

(b) commencing on or after 6 April 2008, where the date on which the return is due to be filed is on or after 6 April 2009, Schedule 24 to the Finance Act 2007 (penalties for errors) applies in relation to the assessment of penalties and appeals against the assessment of penalties in connection with Part 3 as it applies to penalties in connection with income tax.

(4) Sections 100 (determination of penalties by officer of Revenue and Customs), 100A (provisions supplementary to section 100) and 100B (appeals against penalty determinations) of the 1970 Act apply to penalties other than those outlined in regulations 40(3) and 40(4) in connection with repayment under Part 3 and all penalties under Part 4 as they apply to penalties in connection with income tax.

(5) Section 100C (penalty proceedings before the tribunal), 100D (penalty proceedings before court), 102 (mitigation of penalties), 103(3) and (4) (time limit for penalties), 103A (interest on penalties), 104 (savings for criminal proceedings) and 105 (evidence in cases of fraudulent conduct) of the 1970 Act apply to penalties in connection with repayments under Part 3 or 4 as they apply in connection with income tax.

(6) Sections 112 to 115A of and Schedule 3A to the 1970 Act (documents) apply to assessments, returns or other documents made, required, issued, served, sent or lodged for the purposes of or in connection with repayments under Parts 3 or 4 as they apply to documents for the purposes of or in connection with income tax.

(7) Section 118(2) of the 1970 Act (failure to act within limited time) applies in relation to anything required to be done under Parts 3 or 4 as it applies in relation to anything required to be done under that Act.

(8) For the purposes of these Regulations, the amount of a repayment covered by any assessment under Part 3 is not deemed finally determined until that assessment can no longer be varied, whether by the tribunal on appeal or by the order of any Court.

Section 14 Application of repayments

(A1) This regulation applies in relation to plan 1, 2, 3 and 5 loans.

(1) Interest and penalties charged under Parts 3 or 4 are not added to the principal outstanding, are not part of the loan, and payments of such interest or penalties are not credited against the principal outstanding.

(2) Any repayments received by the Authority or loan purchaser will be applied in reduction or satisfaction of the liabilities of a borrower in the following order:—

(a) first, any outstanding penalties, costs, expenses or charges under regulations 24 or 25;

(b) second, any outstanding penalties, costs, expenses or charges under Part 5;

(c) third, any outstanding interest;

(d) fourth, any outstanding principal, which will be reduced or satisfied from the date of receipt.

Section 15 Timing and notification of repayments

(A1) In this regulation—

(a) paragraphs (1) to (2D) relate to the timing of repayments for a plan 1, 2, 3 or 5 loan;

(b) paragraphs (3) to (10) relate to the notification of repayments for a student loan.

(1) A borrower may repay all or any part of a plan 1, 2, 3 or 5 loan to the Authority or loan purchaser at any time, by making direct payments to the Authority.

(2) Subject to paragraphs (2A) and (2B) , the borrower is not required to repay any part of a plan 1, 2 or 5 loan before the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for financial support under an enactment cited in regulation 3A, 3B or 3E , whether by reason of having completed that course or otherwise.

(2ZA) The borrower is not required to repay –

(a) any part of a postgraduate master's degree loan, before the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for a postgraduate master’s degree loan , whether by reason of having completed that course or otherwise;

(b) any part of a postgraduate doctoral degree loan, until the earlier of—

(i) the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for a postgraduate doctoral degree loan , whether by reason of having completed that course or otherwise; or

(ii) the start of the following tax year commencing on 6 April after the fourth anniversary of the course start date.

(2ZB) In paragraph (2ZA)—

“ postgraduate doctoral degree loan ” means a plan 3 loan paid under an enactment cited in table 3 or 4 of regulation 3C;

“ postgraduate master’s degree loan ” means a plan 3 loan paid under an enactment cited in table 1 or 2 of regulation 3C.

(2A) ... Where a borrower takes out a plan 2 or 5 loan in relation to a part-time course, the borrower is not required to repay any part of that loan until the earlier of—

(a) the start of the following tax year commencing on 6 April after the borrower ceases to be eligible for financial support under an enactment cited in regulation 3B or 3E, whether by reason of having completed that course or otherwise; or

(b) the start of the following tax year commencing on 6 April after the fourth anniversary of the course start date.

(2B) ... A borrower who takes out a plan 2 or 5 loan and who changes their mode of study between full-time and part-time study is required to repay—

(a) where there is a change from a full-time course to a part-time course, in accordance with paragraph (2A);

(b) where there is a change from a part-time course to a full-time course before the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2);

(c) where there is a change from a part-time course to a full-time course and the requirement to repay under paragraph (2A) applies, in accordance with paragraph (2A).

(2BA) Despite paragraphs (2), (2A) and (2B), a borrower is not required to repay any part of a plan 5 loan on or before 5th April 2026.

(2BB) Omit paragraph (2BA) and this paragraph on 6th April 2026.

(2C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2D) For the purposes of paragraphs (2), (2A) and (2B), an original course and a top-up course are treated as one course where—

(a) “original course” means an eligible course which, disregarding any intervening vacation, a student attended immediately before a top-up course; and

(b) “top-up course” means—

(i) a full-time honours degree course the student begins, disregarding any intervening vacation, immediately after ceasing to attend a full-time original course for which the person achieved a qualification, or

(ii) a part-time honours degree course the student begins, disregarding any intervening vacation, immediately after ceasing to attend a part-time original course for which the person achieved a qualification.

(3) Subject to paragraphs (7) and (8) , the Authority must notify the borrower and HMRC of—

(a) the first or, as the case may be, next tax year in respect of which the borrower may be required to make repayments under Part 3;

(b) the date on and after which a borrower may be required to make repayments by deductions from earnings under Part 4;

(c) where the borrower has given the Authority notification in accordance with regulation 16(3), the tax year in respect of which the borrower will cease to be required to make repayments under Part 3;

(d) the tax year in which the borrower will cease to be required to make repayments under Part 3 because of the occurrence of a relevant event; and

(e) the date on and after which a borrower will cease to be required to make repayments by way of deduction from earnings under Part 4 because of the occurrence of a relevant event.

(4) For the purposes of paragraph (3)(d), a “relevant event” occurs when—

(a) the loan has been repaid in full to or via the Authority;

(b) an amount sufficient to repay the balance owing to the Authority or loan purchaser is likely to be received by HMRC under Part 4 or by the Authority directly from overseas borrowers by 30 April in the tax year immediately following the tax year in which the notice is issued;

(c) the loan has been cancelled; or

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) For the purposes of paragraph (3)(e), a ‘relevant event’ occurs when—

(a) the loan has been repaid in full to or via the Authority;

(b) an amount sufficient to repay in full the balance owing to the Authority or loan purchaser is likely to be received by HMRC under Parts 3 and 4 and by the Authority directly from overseas borrowers by the date given in the notice;

(c) the loan has been cancelled;

(d) the borrower has notified the Authority in accordance with regulation 16(3);

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) the borrower has undertaken to repay the loan in full after the date given in the notice in accordance with regulation 18 and meets the criteria of that regulation.

(6) The Authority must not issue a notice under paragraph (3)(d) after the end of the calendar year during which the tax year specified in the notice ends.

(7) Where the Authority has notified a borrower and HMRC that repayments under Parts 3 and 4 must no longer be made but at a later date it appears to the Authority that the student loan ... has not been fully repaid, then a further notice may be given in accordance with paragraph (3).

(8) No notice need be given under paragraph (3)(a) or (b) if the borrower’s loan does not exceed £120.

(9) Any notice which the Authority is required to give to HMRC pursuant to this regulation may be given in respect of one or more than one borrower, and in respect of each borrower, the Authority must provide the particulars required in paragraph (3).

(10) Any notice given by the Authority pursuant to the Education (Student Loan) (Repayment) Regulations 2000 prior to the coming into force of these Regulations is to be treated as having been given pursuant to these Regulations.

Section 16 Deferral of repayment: initial training of teachers

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) A borrower—

(a) whose plan 1, 2 or 5 loan was made in connection with undertaking a course for the initial training of teachers, other than a course leading to a first degree; and

(b) who has notified the Authority in writing of a desire not to repay that loan during any period in which the borrower is also required to repay a loan made under the Education (Student Loans) Act 1990 or the Education (Student Loans) (Northern Ireland) Order 1990 ,

is not ... required to repay any part of the plan 1, 2 or 5 loan during any such period.

(3A) If the loan the borrower is not required to repay by virtue of paragraph (3) is a plan 2 loan, for the period the borrower is not required to repay that loan, the rate at which the loan bears interest is the lower of—

(a) if paragraph (3AA) does not apply, the standard interest rate, or

(b) if paragraph (3AA) applies, the interest rate cap within the meaning of regulation 20BA(4).

(3AA) This paragraph applies if, in relation to a month, the standard interest rate exceeds by 0.1 per cent or more the interest rate cap within the meaning of regulation 20BA(4).

(3B) Paragraph (3A) applies despite regulation 21A (interest rate on plan 2 loans).

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 17 Date of repayment

For the purposes of this Part, repayment will be considered to have been paid by the borrower and received by the Authority or loan purchaser as follows:—

(a) where an amount is paid by the borrower directly to the Authority, or by direct debit under regulation 18, a repayment of that amount is considered to have been received on the date on which the amount is, in fact, received;

(b) where HMRC have notified the Authority that an amount has become payable to it in respect of a tax year under Part 3, a repayment of that amount is considered to have been received by the Authority on 31 January following the tax year, whether or not the borrower has, in fact, paid any or all of that amount to HMRC;

(c) where an amount is deducted by an employer under Part 4 in respect of the tax year ending on 5 April 2019 or any previous tax year , that amount must be aggregated with all other amounts deducted in the same tax year and repayments of the aggregate amount will be considered to have been received by the Authority in equal instalments received on the days during the tax year which are–

(i) the last days of a month;

(ii) days after the date on which the Authority has given notice under regulation 15(3)(b) that payment should be deducted; and

(iii) days before the date on which the Authority has given notice under regulation 15(3)(e) that payment should cease to be deducted; ...

(ca) where an amount is deducted by an employer under Part 4 in respect of the tax year beginning on 6 April 2019 or any subsequent tax year, a repayment of that amount is considered to have been received by the Authority on—

(i) the day on which it was deducted by the employer; or

(ii) where an adjustment is made in relation to the deduction, the day on which that adjustment is made or the last day of the relevant tax year if the adjustment is made outside the relevant tax year ; and

(d) for the purposes of transferred loans, payment to the loan purchaser by the borrower is considered to have been received on the same day as payment is considered to have been received by the Authority in accordance with this regulation.

Section 18 Direct debit repayment

(1) This regulation applies if—

(a) the borrower gives notice to the Authority of an intention to repay the outstanding balance of a student loan ... (“the relevant loan”) in accordance with this regulation;

(b) the Authority is satisfied that the borrower is likely to repay all of the outstanding balance of the relevant loan under Part 4 within 23 months of that notice; and

(c) the borrower has not previously ceased making payments under this regulation without the relevant loan having being repaid in full, unless such cessation was agreed by the Authority.

(2) Where this regulation applies, subject to paragraphs (3) and (4), the Authority must give notice to HMRC, in accordance with regulation 15(3)(e) that deductions in respect of the relevant loan from the borrower’s earnings are to cease from the date specified in the notice.

(3) The borrower must complete and return to the Authority in the format required by the Authority from time to time a standing instruction to the borrower’s bank authorising monthly lump sum payments to the Authority in such sum as is required to ensure payment of the outstanding balance of the relevant loan within the next 23 months.

(4) The first date on which a bank, authorised by a borrower to make a payment, makes a payment must fall no later than 30 days after the date which the Authority specifies in a notice pursuant to regulation 15(3)(e).

(5) If at any time the instruction to the borrower’s bank—

(a) is refused on any second presentation by the Authority; or

(b) is cancelled or otherwise altered by the borrower without the permission of the Authority given under paragraph (6),

then the Authority must give notice of any refusal or failed payment to the borrower and must give a notice to HMRC and to the borrower pursuant to regulation 15(3) that deductions in respect of the relevant loan from earnings are to recommence unless regulation 15(8) would otherwise apply.

(6) The borrower may, at any time, agree with the Authority that repayment in accordance with this regulation will cease, and thereafter the Authority must give a notice to HMRC and to the borrower in accordance with regulation 15(3) that repayment through the tax system is to recommence unless regulation 15(8) would otherwise apply.

(7) The Authority may suspend or delay the operation of paragraph (5) if and to the extent it appears to the Authority expedient to do so, taking into account the causes of the failed payment and the Authority must notify the borrower of any suspension or delay as the case may be.

(8) This regulation will not affect any voluntary repayments made by a borrower by any method pursuant to regulation 15(1).

Section 18A Division of repayment : more than one loan

(1) This regulation applies if—

(a) a borrower has a combination of plan 1, 2, 4 or 5 loans,

(b) the borrower is required to repay two or more of the loans,

(c) the loans have different repayment thresholds, and

(d) the Authority receives a repayment other than a direct payment.

(1A) The Authority must reduce the outstanding balance of the loans by—

(a) in the case of the loan with the highest repayment threshold, the total amount due in respect of that loan, and

(b) in the case of every other loan, the amount due in respect of each loan less the amount due in respect of the loan (or loans) with a higher repayment threshold.

(1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) For the purposes of repayments under Part 4 in respect of the tax year beginning on 6 April 2019 or any subsequent tax year, the references in paragraphs (1) and (1A) to the repayment thresholds ... are to be read as references to an apportionment of those thresholds in respect of each month of the tax year in question, calculated by dividing the relevant repayment threshold into twelve equal parts.

Section 19 Cancellation

(A1) This regulation applies in relation to plan 1, 2, 3 and 5 loans.

(1) This regulation applies where a borrower is not in breach of any obligation to repay any of the following—

(a) a loan mentioned in paragraph (4);

(b) a plan 1, 2, 3 or 5 loan.

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In this regulation “post-2006 student loan” means a plan 1 loan paid under an enactment cited in table 2 or 3 of regulation 3A and taken out by—

(a) a borrower who takes out a plan 1 loan for the first time in respect of an academic year beginning on or after 1 September 2006; or

(b) a borrower who takes out a plan 1 loan in respect of a course which satisfies the following conditions–

(i) it begins on or after 1 September 2006;

(ii) it is not an end-on course following on from a course which the borrower began before 1 September 2006; and

(iii) it is not one to which the borrower’s status as a student eligible for support under an enactment cited in table 2 or 3 of regulation 3A has been transferred from another course which the borrower began before 1 September 2006.

(3) The Authority or loan purchaser must cancel the borrower’s liability to repay the loan when one of the following occurs—

(a) the borrower dies;

(b) the borrower receives a disability-related benefit and because of the disability is permanently unfit for work;

(c) in the case of a post-2006 student loan , the 25 th anniversary of the date on which the borrower became liable to repay the loan ; ...

(d) in the case of a plan 1 loan other than a post-2006 student loan , the borrower reaches the age of 65 ... ...

(e) in the case of a plan 2 loan, unless sub-paragraph (f) applies , the 30 th anniversary of the date on which the borrower became liable to repay the loan ...

(f) in the case of a plan 2 or 5 loan for an Access to HE Diploma, if the borrower—

(i) achieves at least one Access to HE Diploma, and

(ii) as an eligible student completes a designated course;

(g) in the case of a plan 3 loan , the 30th anniversary of the date on which the borrower became liable to repay the loan;

(h) in the case of a plan 5 loan, unless sub-paragraph (f) applies, the 40th anniversary of the date on which the borrower became liable to repay the loan.

(4) For the purposes of paragraph (1) the loans are loans made under the Education (Student Loans) Act 1990, the Education (Student Loans) (Northern Ireland) Order 1990, the Education (Scotland) Act 1980 and Regulations made under it, and the Education (Student Support) (Northern Ireland) Order 1998 and Regulations made under it.

(5) The cancellation of the borrower’s liability to repay the loan under paragraph (3) does not affect the liability of the borrower to make repayments under Part 3 subject to and in accordance with that Part in respect of any tax year—

(a) in the case of cancellation under paragraph (3)(a), during which the borrower was alive; and

(b) in any other case, preceding the tax year during which the loan or the postgraduate ... degree loan was cancelled.

(6) The cancellation of a borrower’s liability to repay the loan under paragraph (3) does not affect the employer’s liability to make deductions under Part 4 subject to and in accordance with that Part in respect of any earnings period ending before the date of cancellation.

(7) In this regulation—

“ Access to HE Diploma ” has the meaning given in regulation 2 of the Further Education Loans Regulations 2012;

“ designated course ” means a course designated by or under regulation 5 or 139 of the 2011 Support Regulations;

“ eligible student ” has the meaning given in regulation 4 or 137 of the 2011 Support Regulations.

Section 20 Refunds

(A1) This regulation applies in relation to plan 1, 2, 3 and 5 loans.

(1) Where the Authority has received a repayment either directly from the borrower or from HMRC under Part 4—

(a) which results in the loan being repaid in full, or

(b) when the loan has already been repaid in full,

the Authority must refund to the borrower any amount not required to repay the loan in full together with interest calculated in accordance with paragraph (1A).

(1A) The excess payment accrues interest—

(a) on and after the day on which the Authority receives the excess payment until the earlier of—

(i) the end of the 60th day after the day on which the Authority gives notice under paragraph (1B), or

(ii) the end of the day on which the Authority refunds the excess payment to the borrower, and

(b) at the rate set out in paragraph (1C).

(1B) The Authority must give notice informing the borrower of the following—

(a) that the Authority—

(i) has received an excess payment;

(ii) must pay interest on an excess payment;

(b) the period for which an excess payment accrues interest.

(1C) The rate at which an excess payment accrues interest is—

(a) if the excess payment relates to a plan 1, 3 or 5 loan, the rate at which the loan would have borne interest if it had not been repaid in full;

(b) if the excess payment relates to a plan 2 loan, the lower of—

(i) the rate at which the loan would have borne interest if it had not been repaid in full, or

(ii) the standard interest rate.

(2) Where the Authority is considered to have received a payment from HMRC under Part 3 in respect of a tax year –

(a) which results in the loan being repaid in full, or

(b) when the loan has already been repaid in full,

the repayment will be considered to have been received by the Authority on 31 January next following the tax year in accordance with regulation 17(b) and the Authority must refund to HMRC for the borrower’s account any excess payment which results from the receipt.

(3) A refund under paragraph (2) will not carry interest and HMRC will be considered to have received the refund on the date on which the amount refunded was considered to have been received by the Authority in accordance with regulation 17.

(4) Subject to ... regulation 20A where the Authority has received a repayment by way of deduction from the borrower’s earnings for a tax year in accordance with Part 4 and those earnings do not exceed the repayment threshold , the Authority must refund the amount deducted if the borrower applies for a refund.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 20A Excess payments: more than one loan

(1) This regulation applies where—

(a) a borrower has a dual-plan loan, and

(b) the Authority receives a direct payment from the borrower or a repayment from HMRC under Part 3 or 4—

(i) which results in one of the loans being repaid in full; or

(ii) when one of the loans has already been repaid in full.

(2) Where the amount of the excess payment exceeds £10, the Authority must give notice to the borrower that—

(a) the Authority intends to treat the excess payment as a direct payment ... for the second loan, unless the borrower notifies the Authority, within 60 days of the date of the Authority’s notice, that the excess payment should be refunded to the borrower; and

(b) interest will accrue on a refund from the date of receipt of the repayment until the earlier of—

(i) a period of 60 days after the Authority issues the notice; or

(ii) the date on which the Authority makes the refund to the borrower.

(3) The Authority must treat any excess payment as a direct payment to the Authority ... for the second loan, unless the borrower gives notice to the Authority in accordance with paragraph (2)(a).

(4) Where the borrower gives notice to the Authority in accordance with paragraph (2)(a) that the excess payment should be refunded, the Authority must refund the excess payment and any accrued interest to the borrower.

(5) A refund under paragraph (4) carries interest calculated as if it were the principal of the fully repaid loan, outstanding from the date of receipt of the repayment to the earlier of—

(a) the end of a period of 60 days after the Authority issues a notice, or

(b) the date on which the Authority makes the refund to the borrower,

after which period no interest will accrue.

(6) In this regulation—

“ dual-plan loan ” means any two of the following—

a plan 1 loan;

a plan 2 loan;

a plan 3 loan;

a plan 4 loan;

a plan 5 loan;

“fully repaid loan” means a loan that has been repaid in full in the circumstances described in paragraph (1);

“second loan” means the loan that remains unpaid in those circumstances;

“excess payment” means the amount of the repayment described in paragraph (1)(b) which is not required to repay the fully repaid loan.

Section 20B Interest rate not to exceed prevailing market rate

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 20BA Interest rate cap: plan 2, plan 3 and plan 5 loans

(1) In this regulation—

(a) “ relevant interest rate ”, in relation to a month, means—

(i) in relation to a plan 2 loan, the rate at which the loan bears interest as determined in accordance with regulation 21A;

(ii) in relation to a plan 3 loan, the rate at which the loan bears interest under regulation 21B;

(iii) in relation to a plan 5 loan, the rate at which the loan bears interest under regulation 21C;

(b) the “ interest rate cap ”, in relation to a month, means the interest rate determined in accordance with paragraph (4).

(2) Paragraph (3) applies where the relevant interest rate in relation to a particular plan 2 loan, plan 3 loan or plan 5 loan exceeds by 0.1 per cent or more, in relation to any month, the interest rate cap.

(3) In relation to each day of the month concerned, the loan concerned bears interest at the interest rate cap, and regulation 21A, 21B or 21C (as the case may be) must be read accordingly.

(4) The “ interest rate cap ”, in relation to a month (“month A”), is the lower of the following—

(a) the interest rate calculated by—

(i) taking the sum of the interest rates published in data set 1 in relation to the month (“month B”) that is the third month before month A and the 11 months preceding month B,

(ii) dividing by 12, and

(iii) rounding to the first decimal point;

(b) the interest rate calculated by—

(i) taking the sum of the interest rates published in data set 2 in relation to month B and the 11 months preceding month B,

(ii) dividing by 12, and

(iii) rounding to the first decimal point.

(5) In paragraph (4)—

“ data set 1 ” means data set CFMZ6LI as published by the Bank of England (monthly average of UK resident banks’ sterling weighted average interest rate - other loans with a fixed rate to individuals and individual trusts (in per cent) not seasonally adjusted);

“ data set 2 ” means data set CFMZ6K9 as published by the Bank of England (monthly average of UK resident banks’ sterling weighted average interest rate - other loans, new advances, on a fixed rate to individuals and individual trusts (in per cent) not seasonally adjusted).

(6) The Authority must publish the interest rate cap in relation to every month, as soon as practicable and by whatever means and in whatever media the Authority thinks fit.

Section 21 Interest rate on plan 1 loans

(A1) This regulation applies in relation to plan 1 loans .

(1) Subject to paragraph (2), during any academic year, if the Authority determines that plan 1 loans will bear interest, loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to the standard interest rate .

(2) If the rate referred to in paragraph (1) exceeds the rate for the time being specified by article 60G(3)(d) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 plan 1 loans bear interest at the rate so specified.

(3) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(4) The index of prices to which the Authority is required by section 22(8) of the 1998 Act to have regard in prescribing the rate of interest which plan 1 loans bear is the retail price index .

(5) The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate determined in accordance with paragraph (1) for any forthcoming academic year, subject to any variation required by virtue of paragraph (2) to be applied.

(6) If, for any academic year, the Authority determines not to charge interest on plan 1 loans , the Authority must publish notice of that fact in the same manner.

(7) If, for any academic year, the Authority publishes more than one rate of interest to apply to plan 1 loans , any subsequent rate so published will replace any previously published rate as the rate to apply from the date specified in the notice.

Section 21A Interest rate on plan 2 loans

(1) This regulation applies in relation to plan 2 loans .

(2) Subject to paragraphs (2A), (2B), (2C), (2D), (2E), (2F), ... ... (4) and (5), during any academic year, if the Authority determines that plan 2 loans will bear interest, loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to—

(a) the standard interest rate plus 3%, until the earlier of the end of the tax year in which—

(i) the borrower completes the course;

(ii) the borrower leaves the course; or

(iii) the fourth anniversary of the course start date occurs, in the case of loans in relation to part-time courses;

(b) after the period in sub-paragraph (a) for a domestic borrower —

(i) in a tax year in which the borrower’s interest income is the lower interest threshold or less, the standard interest rate;

(ii) in a tax year in which the borrower’s interest income is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate; or

(iii) in a tax year in which the borrower’s interest income is more than the higher interest threshold, the standard interest rate plus 3%;

(c) after the period in sub-paragraph (a) for an overseas borrower , where the Authority has determined under regulation 75(1) that the borrower may repay a loan by income-related instalments and the Authority considers that the interest income the borrower is likely to receive in the next 12 month period is—

(i) the lower interest threshold or less, the standard interest rate;

(ii) more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(iii) more than the higher interest threshold, the standard interest rate plus 3%;

(d) after the period in sub-paragraph (a) for an overseas borrower , in any period during which a borrower is required to pay to the Authority a fixed instalment in accordance with a notice served under regulation 73, the standard interest rate plus 3% ;

(e) for any period where sub-paragraphs (a), (b), (c) and (d) do not apply to a borrower, the standard interest rate.

(2ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2A) Subject to paragraphs (2B) and (2C) ..., during any academic year or part of any academic year, where a borrower makes repayments in accordance with regulation 18 or repays all of the outstanding balance of the loan under regulation 15(1), the loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to—

(a) for a domestic borrower who was a domestic borrower for the whole or part of the previous tax year —

(i) where the interest income the borrower received in the previous tax year is the lower interest threshold or less, the standard interest rate;

(ii) where the interest income the borrower received in the previous tax year is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(iii) where the interest income the borrower received in the previous tax year is more than the higher interest threshold, the standard interest rate plus 3%;

(b) for an overseas borrower , where the Authority has determined under regulation 75(1) that the borrower may repay a loan by income-related instalments and the Authority considers that the interest income the borrower is likely to receive in the next 12 month period is—

(i) the lower interest threshold or less, the standard interest rate;

(ii) more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(iii) more than the higher interest threshold, the standard interest rate plus 3%;

(c) for an overseas borrower , in any period during which a borrower is required to pay to the Authority a fixed instalment in accordance with a notice served under regulation 73, the standard interest rate plus 3%;

(d) where sub-paragraphs (a), (b) and (c) do not apply to a borrower, the standard interest rate.

(2B) The interest income applied in paragraph (2A) will be from the tax year in which—

(a) repayments are made under regulation 18 where—

(i) a borrower makes repayments under regulation 18 during a tax year;

(ii) the borrower requests, after the end of the tax year in sub-paragraph (i), that their interest rate is recalculated; and

(iii) the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year;

(b) a borrower repays all of the outstanding balance of the loan under regulation 15(1) where—

(i) the borrower requests that their interest rate is recalculated after the end of the tax year; and

(ii) the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year.

(2C) Where a borrower repays all of the outstanding balance of the loan under regulation 15(1) in the tax year specified by regulation 15(2), the loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to the standard interest rate.

(2D) Subject to paragraphs (2E) and (2F) ..., for a borrower to whom Part 4 applies and has applied for the whole or part of the previous tax year, where the borrower repays all of the outstanding balance of the ... loan by way of deductions from earnings under Part 4 during the tax year beginning on 6 April 2019, any subsequent tax year or any part of those tax years, that loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to—

(a) where the interest income the borrower received in the previous tax year is the lower interest threshold or less, the standard interest rate;

(b) where the interest income the borrower received in the previous tax year is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

(c) where the interest income the borrower received in the previous tax year is more than the higher interest threshold, the standard interest rate plus 3%.

(2E) The interest income applied in paragraph (2D) will be from the tax year in which a borrower repays all of the outstanding balance of the ... loan by way of deductions from earnings under Part 4 where—

(a) the borrower requests that their interest rate is recalculated after the end of the tax year; and

(b) the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year.

(2F) Where, during the tax year beginning on 6 April 2019 or any subsequent tax year or any part of those tax years, a borrower repays all of the outstanding balance of the ... loan by way of deductions from earnings under Part 4 in the tax year specified by regulation 15(2), that loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to the standard interest rate.

(2G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) During ... any academic year or part of any academic year beginning on or after 6 April 2016, where a borrower fails to comply with one or more of regulations 22, 23(4) and 72, their loan bears interest at the rate which will result in an annual percentage rate of charge determined in accordance with total charge for credit rules equal to the standard interest rate plus 3% for the period from the date the borrower fails to comply with one or more of regulations 22, 23(4) and 72, until the borrower complies with those regulations.

(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where a borrower changes their mode of study between full-time and part-time study the interest under paragraph (2)(a) is to be calculated as if the course is a—

(a) full-time course, where there is a change from a part-time course to a full-time course but before the requirement to repay under regulation 15(2A) applies;

(b) part-time course, where there is a change from a part-time course to a full-time course and the requirement to repay under paragraph 15(2A) applies;

(c) part-time course, where there is a change from a full-time course to a part-time course.

(6) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(7) The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate determined in accordance with paragraphs (2) and (4) or where relevant paragraph (3), for any forthcoming academic year or part of that year.

(8) If, for any academic year, the Authority publishes more than one rate of interest to apply to plan 2 loans , any subsequent rate so published will replace any previously published rate as the rate to apply from the date specified in the notice published in accordance with paragraph (7).

(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) The additional interest rate is a percentage equal to 3 x (I - L)/(H - L) where—

I is the borrower’s interest income,

L is the lower interest threshold,

H is the higher interest threshold.

(11) The borrower’s interest income is—

(a) for a borrower to whom regulation 28 (but not regulation 42) applies, total income as calculated in accordance with regulation 29(4) but without excluding the repayment threshold in regulation 29(4)(a);

(b) for a borrower to whom regulation 42 (but not regulation 28) applies, earnings as defined in regulation 41;

(c) for a borrower where the Authority makes a determination that the borrower may repay a loan by income-related instalments under regulation 75, gross income as defined in regulation 71;

(d) for a borrower to whom both regulations 28 and 42 apply in the same tax year, total income as calculated in accordance with regulation 29(4) but without excluding the repayment threshold in regulation 29(4)(a).

(11A) This regulation is subject to the following—

(a) regulation 16 (deferral of repayment: initial training of teachers);

(b) regulation 20BA (interest rate cap: plan 2, plan 3 and plan 5 loans).

(11B) In this regulation—

“ higher interest threshold ” means the higher interest threshold set out in, or calculated in accordance with, regulation 21AA;

“ lower interest threshold ” means the lower interest threshold set out in, or calculated in accordance with, regulation 21AB.

(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 21B Interest rate on plan 3 loans

(1) The ... interest rate in relation to a plan 3 loan is the standard interest rate plus 3%.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Interest accrues beginning with the day on which any part of the loan is paid.

(3) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(4) The Authority must publish, at least once a year, by whatever means and in whatever media the Authority thinks fit, the interest rate for the forthcoming academic year or part of that year.

(4ZA) This regulation is subject to regulation 20BA (interest rate cap: plan 2, plan 3 and plan 5 loans).

(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 21C Interest rate on plan 5 loans

(1) A plan 5 loan bears interest at the standard interest rate.

(2) Interest accrues beginning with the day on which any part of the loan is paid.

(3) Interest is—

(a) calculated on the outstanding principal of the loan daily, and

(b) added to the outstanding principal of the loan monthly.

(4) This regulation is subject to regulation 20BA (interest rate cap: plan 2, plan 3 and plan 5 loans).

Section 21AA Higher interest threshold for plan 2 loans

(1) For a domestic borrower, the higher interest threshold is—

(a) £49,130 for the repayment threshold years ending on 5th April 2024 and 5th April 2025, and

(b) for each repayment threshold year ending on or after 5th April 2026, the amount rounded up to the nearest £5 (if necessary) being the product of—

(i) the amount of the higher interest threshold for the previous repayment threshold year, and

(ii) the repayment threshold variable.

(2) For an overseas borrower, the higher interest threshold is the amount rounded up to the nearest £5 (if necessary) being the product of—

(a) the higher interest threshold for a domestic borrower, and

(b) the country-specific multiplier for the overseas borrower’s country of residence.

Section 21AB Lower interest threshold for plan 2 loans

(1) For a domestic borrower, the lower interest threshold is the repayment threshold for a plan 2 loan.

(2) For an overseas borrower, the lower interest threshold is the amount rounded up to the nearest £5 (if necessary) being the product of—

(a) the lower interest threshold for a domestic borrower, and

(b) the country-specific multiplier for the overseas borrower’s country of residence.

Section 22 Information requests

If a borrower-

(a) changes home address; or

(b) changes name,

the borrower must inform, and provide particulars of the change to, the Authority within six weeks of the relevant change.

Section 23 Information notices

(1) The Authority may serve a notice (“an Information Notice”) on a borrower by post or by an electronic format .

(2) An Information Notice under paragraph (1) may require the borrower to provide some or all of the following, together with documentary evidence in support where relevant -

(a) full name;

(b) telephone number ...or email address or both ;

(c) National Insurance number or a valid reason for not having one;

(d) date of birth;

(e) a statement of whether the borrower is employed, self-employed or not employed;

(f) the following particulars of employment and income during the period specified in the notice-

(i) for each part of that period during which the borrower was employed, the dates on which the employment began and (unless continuing) ended, the name and address of the employer, employee number, and gross earnings;

(ii) for each part of that period during which the borrower was self-employed, the dates on which that self-employment began and (unless continuing) ended and the borrower’s gross earnings; and

(iii) the amount, source and date of receipt of any other income;

(g) such other information about the borrower’s financial position as may be required to determine whether the borrower is in receipt of any income.

(3) An Information Notice under paragraph (1) must contain statements detailing the penalties for failure to comply with an Information Notice set out in regulations 24 and 27.

(4) Where the Authority serves an Information Notice on a borrower under paragraph (1), the borrower must comply with it within 28 days beginning with the day on which the Information Notice was served.

Section 24 Penalties and Penalty Notices

(1) Where a borrower fails to comply with regulation 22, the Authority may require the borrower to pay a penalty of £50.

(2) Where a borrower fails to comply with regulation 23(4), the Authority may require the borrower to pay a penalty of £50.

(3) Where a borrower is liable to a penalty under paragraphs (1) or (2) and has not paid it by the time of the expiry of the time limit for payment, the Authority may require the borrower to pay one additional penalty of £100 in respect of that failure.

(4) Where a borrower was liable to a penalty under paragraphs (1) or (2) and has paid the penalty but not complied with the requirements of the relevant regulation within 28 days of the date of payment of the penalty, the Authority may require the borrower to pay one additional penalty of £100 in respect of that failure.

(5) The Authority must notify the borrower of a penalty imposed under paragraphs (1) to (4) by serving a notice (“a Penalty Notice”) on the borrower by post or by an electronic format containing the details of that and other possible penalties under regulations 24 and 27.

(6) A penalty imposed under paragraphs (1) to (4) is payable within 28 days beginning on the day on which the Penalty Notice was served, despite the provisions of regulation 15(3), (4), (5) or (6).

(7) The Authority may add any penalty imposed under this regulation to the borrower’s loan account and, if in relation to a plan 1, 2, 3 or 5 loan, it will form part of the principal of the loan from the date on which it is added.

Section 25 Costs and expenses

(1) Where the Authority incurs reasonable costs or expenses in taking steps to—

(a) serve an Information Notice on a borrower under regulation 23(1);

(b) obtain the information requested in an Information Notice served under regulation 23(1); or,

(c) serve a Penalty Notice on a borrower under regulation 24(5).

the Authority may require the reimbursement of those costs or expenses by the borrower.

(2) Where the Authority incurs such costs or expenses as are referred to in paragraphs (1)(a) to (c) in respect of a transferred loan, the Authority is entitled to recover such costs and expenses as are incurred on behalf of the loan purchaser.

(3) The Authority may add any costs or expenses incurred under this regulation to the borrower’s loan account and, if in relation to a plan 1, 2, 3 or 5 loan, they will form part of the principal of the loan from the date on which they are added.

(4) In respect of any transferred loan, any sum added to the borrower’s loan account in accordance with paragraph (3) is owed to the loan purchaser.

Section 26 Alteration of relevant time limits

Where the Authority considers that, having regard to all the circumstances of a particular case, a time limit in regulation 22, 23(4), 24(4) or 24(6) should be relaxed, the Authority may specify another time limit.

Section 27 Foreclosure

Where a borrower fails to comply with an Information or Penalty Notice or both, the Authority may require the borrower to repay the student loan ... in full immediately.

Section 28 Repayments of student loans ... by persons required to submit a tax return

Repayments by a borrower who in respect of any tax year is required to make and deliver to HMRC a return under section 8 of the 1970 Act must be made, accounted for and recovered in the same manner as income tax payable under the Taxes Acts (whether or not any loan of the borrower is a transferred loan); and in such cases the provisions of this Part (which with extensions and modifications include provisions of the Taxes Acts) will apply to and for the purposes of such repayments.

Section 29 Time for and amount of repayments

(1) Every borrower who has received a notice from the Authority of a requirement to make repayments of a student loan ... under regulation 15(3)(a) must make repayment in respect of any tax year—

(a) which is specified in a notice under regulation 15(3)(a) or which, subject to paragraph (2), is any subsequent year up to and including any year specified in a notice under regulation 15(3)(d); and

(b) for which the borrower has been required to make and deliver a return under section 8 of the 1970 Act.

(2) A borrower will not be required to make repayments in respect of any tax year specified in a notice under regulation 15(3)(c) or any subsequent year falling before a year specified in a subsequent notice under regulation 15(3)(a).

(3) The repayment must be an amount equal to—

(a) in the case of a plan 1, 2, 4 or 5 loan , 9% of the borrower’s total income for that year,

(b) in the case of a plan 3 loan , 6% of the borrower’s total income for that year,

calculated in accordance with paragraph (4).

(3A) The repayment under paragraph (3)(b) is additional to, and concurrent with, any repayment under paragraph (3)(a).

(4) A borrower’s total income for the purposes of paragraph (3) will be calculated by identifying the borrower’s total income in accordance with step 1 of section 23 of the 2007 Act and from that total income:

(a) excluding the repayment threshold ;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) excluding unearned income unless the amount of such income for that year exceeds £2,000;

(d) excluding incapacity benefit payable under the Social Security Contributions and Benefits Act 1992 ;

(e) excluding amounts chargeable to tax under Chapters 5, 6, 7 or 10 of Part 3 of the 2003 Act (benefits in kind);

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) excluding Employment and Support Allowance paid under the Welfare Reform Act 2007 ;

(h) deducting the amount of any loss in respect of which relief is given under any of the following—

(i) section 64 of the 2007 Act (trade loss relief against general income);

(ii) section 83 of the 2007 Act (carry-forward trade loss relief);

(iii) section 118 of the 2007 Act (carry-forward property loss relief);

(iv) section 120 of the 2007 Act (property loss relief against general income);

(v) section 128 of the 2007 Act (in respect of losses in an employment); and

(i) deducting the amount of any payment in respect of which relief is given under section 96 of the 2007 Act (relief for post-cessation expenditure);

(j) deducting any amounts in respect of which relief is given under Part 4 Chapter 4 of the Finance Act 2004 (pension schemes etc) and that have not been included in the calculation of total income at step 1 of section 23 of the 2007 Act .

(5) For the purposes of this regulation, unearned income is income other than—

(a) income charged under the provisions of either the 2003 Act or Part 2 of the Income Tax (Trading and Other Income) Act 2005 except jobseeker’s allowance to which Chapter 3 of Part 10 of the 2003 Act applies; and

(b) the profits of a UK furnished holiday lettings business within the meaning of section 127(2) of the 2007 Act.

(5A) If a borrower is required to repay a combination of plan 1, 2, 4 or 5 loans, the repayment threshold for the loan with the lowest repayment threshold applies.

(5B) In this regulation—

“ the 2007 Act ” means the Income Tax Act 2007;

“ jobseeker’s allowance ” has the meaning given in section 1(1) of the Jobseekers Act 1995.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 30 Personal return

For the purposes of establishing the amount of the repayment which a borrower is required to make for a tax year under regulation 29, HMRC may require the borrower—

(a) to include such information as may reasonably be required, in a return required to be made and delivered under section 8 of the 1970 Act ; and

(b) to deliver with the return such accounts, statements and documents as may reasonably be required relating to information contained in the return as a result of paragraph (a).

Section 31 Returns to include self-assessment

(1) Subject to paragraph (2), every return made and delivered by a borrower under section 8 of the 1970 Act must include a self-assessment, namely—

(a) an assessment of the amount of the repayment which, on the basis of the information contained in the return and taking into account any relief or allowance mentioned in regulation 29 the borrower is required to make for the tax year under regulation 29; and

(b) an assessment of the amount payable by the borrower by way of repayment, being the difference between the amount of the repayment which the borrower is assessed to make for the tax year under sub-paragraph (a) and the aggregate amount of any repayments deducted from earnings under Part 4 during that year.

(2) Section 9(2) to (3A) (self-assessment) and section 9A (power to enquire into returns) of the 1970 Act apply to a self-assessment under this regulation as they apply to a self-assessment under section 9(1) of that Act, and any references in the Taxes Acts to those sections is to be construed as a reference to them as extended by this regulation.

Section 32 Records

Section 12B of the 1970 Act (records to be kept for the purposes of returns) applies in the case of a borrower as if any reference to a return includes reference to a return including the information required by regulation 30(b).

Section 33 Other returns and information

(1) Sections 20BA (orders for the delivery of documents) and 20BB (falsification etc of documents) of the 1970 Act, Schedule 23 to the Finance Act 2011 and Schedule 38 to the Finance Act 2012 apply for the purposes of establishing the amount of the repayment a borrower may be required to make under this Part as they apply for the purposes of establishing the amount in respect of which a person is chargeable to income tax.

(2) Schedule 36 to the Finance Act 2008 (information and inspection powers) applies in relation to checking a borrower’s compliance with this Part as it applies in relation to checking a person’s tax position (as defined in that Schedule) subject to the modifications in paragraph (3).

(3) The modifications are —

(a) any reference to any provision of the Taxes Acts is to be treated as a reference to this Part;

(b) any reference to prejudice to the assessment or collection of tax is to be treated as a reference to prejudice to the assessment or collection of student loan ... repayments;

(c) the reference to information relating to the conduct of a pending appeal relating to tax is to be treated as a reference to information relating to the conduct of a pending appeal relating to compliance with this Part; and

(d) in paragraph 21(6)—

(i) paragraphs (a) and (c) are omitted; and

(ii) in paragraph (b) the reference to relevant tax for the chargeable period is to be treated as a reference to the amount of the student loan ... repayment shown in the self-assessment under regulation 31.