Repayment Threshold 2022/23

edited 4 June 2021 at 9:25AM in Student MoneySaving
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edited 4 June 2021 at 9:25AM in Student MoneySaving
With RPI for March in at 1.5%, the repayment threshold for plan 1 loans will rise to £20,195 from 6 April 2022 (19,895 x 1.015 rounded up).

The repayment threshold for plan 2 loans is due to change by the annual average earnings increase for January - March (4.6%) to £28,555 (27,295 x 1.046 rounded up). However recent reports suggest this threshold is likely to be lowered during the Comprehensive Spending Review in the Autumn.

The postgraduate loan (plan 3) threshold remains frozen at £21,000.

For Scottish students, the repayment threshold for plan 4 loans will rise to £25,375 from 6 April 2022 (25,000 x 1.015 rounded up).

From 1st September 2021:

Interest rates for plan 1 and 4 loans will be 1.1% (as a result of the base rate being 0.1%; if base rate rises before 1st September 2022 the rate will be capped at 1.5%).

Interest rates for plan 2 loans will range from 1.5% to 4.5% 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 4.5%.

The government published its interim response to the Augar Review in January https://www.gov.uk/government/publications/post-18-education-and-funding-review-interim-conclusion

It said the following:



In other words, these are all subject to change depending on the outcome of the consultations due shortly and the final decisions at the next Spending Review due in Autumn.
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