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(asked on 6th June 2016) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty’s Government what assessment they have made of the impact on graduates of freezing the income level at which student loans become repayable, and what estimate they have made of the number of students who would be rendered liable if that level were frozen.


This question was answered on 15th June 2016

The impact of freezing the repayment threshold for 5 years was described in the government’s consultation document, which was published in July 2015.

https://www.gov.uk/government/consultations/freezing-the-student-loan-repayment-threshold

Those who earn above the £21,000 threshold can expect to repay nearly £6 extra per week by 2021 (in 2021 prices), or around £306 per year.

We expect that an additional 9% of graduates will start to repay as a result of the threshold freeze. This equates to 190,000 of the 2.1 million Plan 2 graduates expected to be in repayment by 2020/21.

The £21,000 threshold remains higher in real terms than that applicable to student loans taken out before 2012.

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