Repayment Threshold 2021/22

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edited 21 May 2020 at 8:15AM in Student MoneySaving
With RPI for March in at 2.6%, the repayment threshold for plan 1 loans will rise to £19,895 from 6 April 2021 (19,390 x 1.026 rounded up).

The repayment threshold for plan 2 loans will rise by 2.7% (annual average earnings increase for January - March) to £27,295 from 6 April 2021.

The postgraduate loan threshold remains frozen at £21,000.

From 1st September 2020:

Interest rates for plan 1 loans will be 1.1% (as a result of the base rate being 0.1%; if base rate rises before 1st September 2021 the rate will be capped at 2.6%).

Interest rates for plan 2 loans will range from 2.6% to 5.6% depending on whether you are studying or not (including the period until April after finishing) and what you earn if you are in repayment.

Interest rates for postgraduate loans will be 5.6%.

For all but plan 1 loans, this could all change depending on the upcoming Spending Review and Government response to the Augar review (now expected in Autumn).

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