Student loan repayments to start at £25,000

10 Mar 2022

The level at which students begin to pay back their loans will be lowered from £27,295 to £25,000.

From September 2023, the interest rate on student loans will also be set to RPI+0%. Additionally, the length of time that students pay their loans back until they can be written off has been extended from 30 to 40 years.

University tuition fees have been capped at £9,250 for the next two years and will not rise with inflation.

The Department for Education (DoE) said that the changes would 'rebalance the burden of student loans more fairly between the student and the taxpayer and ensure that in future graduates don't pay back more than they borrowed in real terms'.

Michelle Donelan, Higher and Further Education Minister, said: 'We are delivering a fairer system for students, graduates, and taxpayers as well as future-proofing the student finance system. 'We are freezing tuition fees and slashing interest rates for new student loan borrowers, making sure that under these terms no one will pay back more than they have borrowed in real terms.'

Southampton Office

HJS Accountants
Tagus House
9 Ocean Way
Southampton
Hampshire
SO14 3TJ

Tel: 023 8023 4222

Winchester Office

HJS Accountants
6 Charlecote Mews
Staple Gardens
Winchester
SO23 8SR

Tel: 01962 842000

Reading Office

HJS Reading
3 Richfield Place
Richfield Avenue
Reading, Berkshire
RG1 8EQ

Tel: 0118 951 1115