There has been a major change to the student loan scheme this week, with hundreds of thousands of graduates set to benefit.
In the biggest change since student finance to 2012, the repayment threshold has gone up to £25,000 per year.
Hundreds of thousands of graduates can save up to £360 a year since the change came into action on Friday.
Borrowers who have taken out loans since 2012 will not have to start paying back their loans until they earn £25,000. This has gone up from £21,000.
Over the 30-year lifetime of a student loan, this could save some graduates £24,000.
Those who are earning £25,000 or more are set to make savings with lower payments required.
Will you benefit? See the break-down below:
- £25,000 per year repays £0 per month instead of £30
- £27,000 per year repays £15 per month instead of £45
- £30,000 per year repays £37 per month instead of £67
- £33,000 per year repays £60 per month instead of £90
- £35,000 per year repays £75 per month instead of £105
- £40,000 per year repays £112 per month instead of £142
Sam Gyimah, universities minister, said:“The increase in the student repayment threshold marks a key milestone and is another example of the steps the Government is taking to support those in higher education.
“We are seeing more 18-year-olds than ever before attend university, including the highest ever number from disadvantaged backgrounds and we want to give these students a fair deal both during their studies and afterwards too. Not only will it benefit hundreds of thousands of graduates in the next financial year alone, but millions in the years to come.”
The increased repayment threshold applies to any student who has taken out a post-2012 undergraduate student loan or Advanced Learner Loan.