Student loan repayment threshold rises
Students won't have to start paying their loans back until they earn £25,000, up from £21,000.
The change affects all those who graduated university from 2012. The Government predict this move could save graduates up to £360 per year.
Those earning above the £25,000 threshold will see reduced payments from before.
The National Union of Students described the change as a "welcome relief" for many.
President James Thompson said: "We welcome the Government's changes to raise the cap to £25,000. This will benefit graduates across the country, especially those just entering the career ladder. However, this doesn’t distract from the excessive levels of debt that graduates are being levelled with in the first place. The government should now look at the HE Funding Review as an opportunity to see how fees can be reduced so students and graduates won’t be spending the majority of their working lives repaying a loan they’ll likely never fully pay off."
Any outstanding debt after 30 years will be written off.
Graduates won't need to do anything to benefit from these changes as employers will automatically calculate repayments.
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