UK Student Loan Repayment Threshold 2023

In 2023, the repayment threshold for UK student loans plays a crucial role in determining how and when graduates will start repaying their loans. This threshold refers to the minimum income level at which graduates are required to begin making repayments on their student loans. As of April 2023, the repayment threshold for Plan 2 loans, which typically applies to students who started their courses after September 2012, is set at £27,295 per year. This means that graduates earning less than this amount are not required to make repayments on their student loans. The repayment amount is calculated as 9% of the income above the threshold. For instance, if a graduate earns £30,000 annually, they would repay 9% of £2,705 (the difference between their income and the threshold), which amounts to approximately £243.45 annually. It is important to note that the threshold is subject to annual adjustments based on inflation and other economic factors, which can influence how much graduates will repay over time. Understanding this threshold is essential for managing finances and planning for the future.