Student Loan Repayment Threshold Freeze

English and Welsh graduates who started university in or after 2012 will pay around £110 a year more than they would've done from April as a freeze to the student loan repayment threshold - the earnings level at which loans begin to be repaid - has been announced by the Government.

Read the full story here:
'Uni leavers to pay £110+/yr more from April as student loan repayment threshold freeze announced - here's what's happening'

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  • Ed-1
    Ed-1 Forumite Posts: 3,800
    Tenth Anniversary 1,000 Posts Name Dropper
    edited 1 February 2022 at 10:28PM

    The repayment threshold for postgraduate ('Plan 3') loans will remain at £21,000/yr from April, which means graduates will repay £87/yr more. This is instead of a repayment threshold of £21,960, which is what it would have gone to from April if it had been raised in line with average earnings. This change impacts...

    That's not right. Postgraduate Loan repayments are 6% of income over the threshold. Had a decision been made to raise the threshold by 4.6% to £21,970 (1.046 x 21,000 rounded up to nearest £5) then annual repayments would be £58 lower (0.06 x 970).

    It's also not a change as such as no decision had previously been taken to link it to earnings so it continues the ongoing freeze.
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