House of Commons · Written Ministerial Statement
Higher Education Update
13 June 2022 · Department for Education
Proposed by Michelle Donelan Con Chippenham
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The UK student loan interest rates will be capped at 7.3% for Post-2012 undergraduate and postgraduate income contingent repayment loans starting September 1, 2022.
- This reduction in interest rates will be effective for the 2022/23 academic year only, lasting twelve months.
- Michelle Donelan, MP for Chippenham, made this announcement as a Written Ministerial Statement on June 13, 2022.
Issue summary
The statement addresses a temporary reduction in UK student loan interest rates for the 2022/23 academic year.
Action requested
I am announcing today a cap on Post-2012 undergraduate and postgraduate income contingent repayment student loans to bring their interest rates in line with forecasted market rates, effective from September 1, 2022, for a period of twelve months. The interest rate will be set at 7.3% for this year.
Key facts
- Student loan interest rates will cap at 7.3% between 1 September 2022 and 31 August 2023.
- The reduction applies to both Post-2012 undergraduate and postgraduate income contingent repayment loans.
- This action is in line with the Teaching and Higher Education Act 1998, where student loan interest rates are compared against prevailing market rates for comparable unsecured personal loans.
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Assessment & feedback
Summary accuracy