Summary
Education Secretary Bridget Phillipson explained that freezing the repayment threshold for student loans in England will mean an extra £8 a month for graduates. The threshold increase in April will then remain unchanged for three years. The decision is part of broader financial challenges in education and has sparked debate among graduates and campaigners.
Key Facts
- The repayment threshold freeze for Plan 2 student loans in England means graduates will pay about £8 more monthly.
- The current repayment threshold for loans is £28,470 and will go up to £29,385 in April 2024.
- This freeze will last for three years instead of adjusting with inflation.
- Plan 2 loans were available to undergraduates in England from September 2012 to July 2023 and continue in Wales.
- Interest on these loans starts at 6.2% during studies and increases after graduation based on inflation and income.
- Some graduates, like Tinuke Bamiro, see higher repayments affecting their rest-of-life finances.
- Legal actions are underway against universities over teaching quality during the Covid pandemic, though Brunel University is not involved.
