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.
Student Loan Repayment Threshold Freeze
MSE_James_F
MSE Staff 115 Posts
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'Uni leavers to pay £110+/yr more from April as student loan repayment threshold freeze announced - here's what's happening'
'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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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.