Scottish Student loan repayment threshold to rise to £25,000

09 July 2018

In Scotland, graduates will need to earn £25,000 a year before they start paying back their loans from April 2021.

The First Minister announced that as part of a package of measures:

  • The repayment threshold for student loans will be raised to £25,000 from April 2021, and this year the maximum repayment period for student loans will be lowered from 35 to 30 years

  • The bursary for care-experienced students in further and higher education will be increased this year to £8,100, bringing the support available in line with the Scottish living wage at a cost of around £5.5 million

  • £16 million will be invested next year in increasing college bursaries and university grants for students from the lowest income families and expand access to them

The Programme for Government 2017-18 had previously committed to raising the repayment threshold for student loans to £22,000 by the end of the Parliament, however, Nicole Sturgeon confirmed that the Scottish Government will go further and increase it to £25,000 instead.


CIPP comment

The threshold increase for Scottish students will need to be ratified; we will keep the payroll profession updated accordingly.