Threshold changes

The following threshold changes have been advised by the Department for Education (DfE) for the following loans:

 

Undergraduate Loans - Plan 2

From 6 April 2018 the repayment threshold for borrowers who started their course on or after 1 September 2012 (Plan 2) is expected to change.  This affects borrowers who originally applied for their funding in England or Wales on or after this date only (borrowers who started before this date or apply for funding in Scotland or Northern Ireland will have a (Plan 1 loan). This change is subject to parliamentary approval.

The repayment threshold is expected to change to £25,000 a year, £2,083 a month or £480 a week.

This means, from April 2018 borrowers will repay 9% of their income above the new repayment threshold. For example:

Your annual income before tax

How much you repay per month now

How much you’ll repay per month from 6 April

£21,000

£0

£0

£23,500

£18

£0

£25,000

£29

£0

£27,000

£45

£15

£30,000

£67

£37

£33,000

£90

£60

£35,000

£104

£75

£40,000

£142

£112

Generally, if your income is £25,000 or higher, the amount you'll repay will be approximately £30 less per month using the new repayment threshold.

 

Find out:

Undergraduate Loans - Plan 1

From 6 April 2018 the repayment threshold for borrowers who have a Plan 1 loan will rise to £18,330 a year.  This affects borrowers who originally applied for their funding in:

  • Scotland
  • Northern Ireland
  • England or Wales and started their course before 1 September 2012.

Find out more information on repaying a Plan 1 loan

Living overseas with a Plan 1 or Plan 2 loan?

For borrowers living overseas, we work out monthly repayments amount using the same principles as for those who live in the UK. Repayment will be 9% of their earnings over the repayment threshold for the country they’re living in.

To take account of differences in living costs, the repayment threshold in a foreign country may not be the same as in the UK.  However, the amount repaid remains 9% of what is earned above that equivalent threshold. 

Subject to the change in repayment threshold being approved by parliament, the equivalent overseas thresholds will also change.  More information on overseas rates will be available early next year.

Postgraduate Loan

Postgraduate Loans don’t come into repayment until 6 April 2019. The repayment threshold remains at £21,000. Postgraduate Loans will be repaid in addition to undergraduate Plan 1 or Plan 2 loans. Find out more information on repaying a Postgraduate Loan.

Mortgage Style Loans

From 1 September 2017 until 31 August 2018 the threshold for mortgage style loans will be £29,210.

Any queries on mortgage style loans should be addressed to the loan administrator.