Students starting a degree from 2012 onwards will see the loan repayment threshold rise as part of a new government shake up of the loans system.
The new changes will see loan repayments begin after earning £25,000 a year. Further to this, plans have been put in place to raise the earnings threshold annualy in line with increases to average earnings. More music to students and graduates alike will be the raising of the interest threshold on student loans. This will help ease concerns of students regarding interest being added to their student debt.
However it is worth noting if average earnings fall nationally, the threshold will move down in line with this. Although this is seen as unlikely to happen.
All of this is set to come into place in April 2018, and is seen as the biggest shake up of student finance of recent years.
