Is it cheaper for high earners abroad to pay the non-compliance rate?

StillSomewhatConfused

Question is about living abroad and having a plan 2 student loan which has been being repaid  every month for the last year and have been asked to provide information for the annual review.

We notice (my son and I) that if we do not provide my employment information, he will get charged a 'non-compliance' interest rate and it seems to be RPI + 3%. It seems however that he would still be charged RPI + 3% if income information is provided as it's above the threshold, but the calculated monthly payments would be higher due to a reasonably high income.

Is this the case? It seems like not providing  employment information will not change the interest rate, but will lower the required monthly payment (by more than half). Or is the non-compliance interest rate a 3% penalty on top of the highest possible rate? 

Thanks in advance.

silvercar

Answered on the student board. I'll close this thread.