Download the full outcome
Detail of outcome
We’ve decided to implement a repayment threshold freeze for all borrowers with post-2012 (‘Plan 2’) loans. The repayment threshold will be £21,000 at April 2016, and it will not be uplifted until at least April 2021, when the threshold will be reviewed.
The ‘upper’ interest threshold of £41,000 will be frozen at the same time to ensure that variable interest rates applied for those earning between £21,000 and £41,000, remain unaltered.
Detail of feedback received
We received 489 responses from a wide variety of interested parties including:
- students’ unions
- higher education representative bodies
- businesses and business organisations
- professional bodies
We are consulting to gather views on a proposal to keep the student loan repayment threshold at the same level for 5 years.
This new proposal was announced in the Budget on 8 July. The government wants to ensure higher education remains open and affordable to students, graduates and taxpayers in the long-term.