Annual updates to Student Loans thresholds
13 August 2020
The Department for Education (DfE) has announced the annual updates to the Interest Rates and Thresholds of Income Contingent Student Loans.
From 6 April 2021, the repayment threshold for Plan 1 loans will rise to £19,985 per annum. This is for any pre-2012 loans.
The repayment threshold for Plan 2 loans will rise to £27,295 from 6 April 2021, and this is for any loans provided post-2012.
The repayment threshold for Postgraduate loans remains unchanged at £21,000 per year.
The announcement also details which interest rates will be applied to each type of loan.
The threshold is the point at which individuals will begin to repay their student loan, at a rate of 9% of eligible earnings for both Plan 1 and Plan 2, and at a rate of 6% for any postgraduate loans.
There will also be a Student Loan Plan Type 4 introduced from 6 April 2021, for those students who have drawn down a loan in Scotland.
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