Pre 1998 Student loan threshold

sasmlc

Hi i am in the position of very nearly tipping over the current of £36284 which will mean not being able to defer my loans from Nov. I am due to have them written off on 2nd dec 2024 but as you can imagine i dont really want to start paying £200 a month. Does anyone know how they calculate the thresholds year on year as I know last year the threshold increased dramatically but cant see that happening this year? TIA

kaMelo

The threshold for mortgage style loans is set at (if I remember correctly) 85% of national average earnings. That's why some years it has dropped rather than always risen.
Whilst it's obviously not ideal to start having to pay it back, don't make yourself poorer in order to do so. The write off date is fixed, starting paying does not extend that write off date so if a pay rise/promotion is in the offing I would always say take it. You may take a small short term hit but in the longer term will be much more beneficial.


Edit;
https://www.legislation.gov.uk/uksi/1998/211/made

“deferment level” means 85% of the lender’s estimate of average monthly earnings of all full-time employees in Great Britain for the January when the level will apply based on figures published by the Office for National Statistics, or if that Office ceases to publish relevant figures, any other published figures;