Lower earning graduates will need to start student loan repayments following a freeze on repayment thresholds.
The current repayment threshold for plan 2 student loans is £28,470. It will go up in April 2027 to £29,385. However, the threshold will then be frozen for three years until 2030, so the financial drag will mean more graduates will be paying earlier (like the income tax threshold freeze).
The Treasury said: “graduates generally benefit from higher earnings, and ensuring that they repay more of their loan is fair for those workers who have not gone to university.”
