Repayment Threshold 2024/25

Ed-1

With RPI for March in at 13.5%, from 6 April 2024 the repayment threshold for 
• plan 1 loans will rise to £24,990 (22,015 x 1.135 rounded up)
• plan 4 loans will rise to £31,395 (27,660 x 1.135 rounded up)

The following repayment thresholds are currently frozen 
• plan 2 loans at £27,295 until 6 April 2025
• postgraduate loans (plan 3) at £21,000 but subject to annual review (in the absence of any announcements will remain frozen)
• plan 5 loans at £25,000 until 6 April 2027 (this threshold comes into force from 6 April 2026)

From 1st September 2023:

Interest rates for plan 1 and 4 loans will be 5.25% (as a result of the base rate being 4.25%; if base rate rises before 1st September 2024 the rate will be capped at 13.5%).

Subject to the prevailing market rate cap (which is highly likely to reduce the rate), interest rates for
• plan 2 loans will range from 13.5% to 16.5% depending on whether you are studying or not (including the period until April after finishing) and what you earn if you are in repayment
• postgraduate loans (plan 3) will be 16.5%
• plan 5 loans will be 13.5%

silvercar

WOW! On a plan 2 loan with £40,000 outstanding, you would need to earn over £100k just to cover the interest on the loan!

Ed-1

silvercar said:

WOW! On a plan 2 loan with £40,000 outstanding, you would need to earn over £100k just to cover the interest on the loan!

It's like wacky races with the thresholds. Plan 1 has made up considerable ground on plan 2 and is now within a whisker of overtaking plan 5. Meanwhile D ick Dastardly and Mutley in plan 3 have suffered a puncture and are now lurking far behind the herd.