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Higher Education Update

13 June 2022

Proposing MP
Michelle Donelan Con
Chippenham
Type
Written Ministerial Statement
Department
Department for Education
View on Parliament.uk -->

At a Glance

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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