Income Contingent Student Loans for post-2012 (Plan 2) loans
The repayment threshold for post-2012 (plan 2) loans will remain £27,295 for the period 6 April 2022 to 5 April 2023.
The interest rate thresholds for post-2012 (plan 2) loans for the period 6 April 2022 to 5 April 2023 will be as follows; the lower threshold will remain £27,295 and the higher threshold will remain £49,130.
Postgraduate Loans
The repayment threshold for Postgraduate loans remains £21,000.
Opinion
With pay rising due to inflation and a shortage of workers in many industries, salaries will inevitably rise. Effectively, freezing the cap, means a ‘real terms’ rise to student loan payments.
The government has been keen to trumpet its moves to limit the spiraling cost of living – freezing student loan thresholds & the upcoming rise to National Insurance don’t play well into this mantra.