Student loans 2023 - cost of deferment

pawn

My son needs to make a decision as to whether to go to his second choice university now (September 22) or his first choice next year (September 23). Unfortunately he was initially rejected from his first choice but has now been offered a deferred place after an A-level remark. 

He will be able to borrow the full maintenance loan plus tuition.

I understand that low income (under £25k) graduates won’t really be affected. I have read that due to differing interest rates higher earners may be better off under the new system, but what is a higher earner? Is there a way of guesstimating (or even calculating) the sort of salary that a graduate need to earn to not make deferring a totally stupid idea.

(idk if he will have better earning potential with the deferred place uni - same course but a more “prestigious” institution with statistically better earnings  but not sure if that is because of the demographic of the graduates than the quality of the teaching) 

kaMelo

The two major negative points in waiting until Sep 23 will be the repayment term increasing by ten years and lower earnings threshold both of which are likely to dwarf any saving on interest rates.

MallyGirl

kaMelo said:

The two major negative points in waiting until Sep 23 will be the repayment term increasing by ten years and lower earnings threshold both of which are likely to dwarf any saving on interest rates.

indeed! write off after 40 years not 30 means basically their full working life near enough. Repayment threshold at £25,000 instead of £27,295 means that some lower earners will start repaying when they wouldn't have before

Sncjw

Is he able to do his first year at the 2nd place uni and the transfer