Why some graduates in Sheffield will STOP paying back their student loans today

Student loan repayment threshold rises from today
Student loan repayment threshold rises from today
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Some graduates in Sheffield will stop paying back their student loans from today after the threshold for repayments was increased.

English and Welsh students who took out loans from September 2012 onwards - when fees in England rose to up to £9,000 a year - will now start to pay back when they earn £25,000 a year instead of £21,000.

It also means those making repayments who fall below the new baseline will have their payments stopped, while others will repay less each month.

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The government says the move could save graduates up to £360 a year.

The Department for Education said some 600,000 graduates will benefit over the next financial year alone.

For students who started university between 1998 and 2012 the threshold is increasing from £17,775 to £18,330.

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Universities minister Sam Gyimah 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."

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