Student loan repayment threshold rises by 2.9%

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The government has increased the loan repayment thresholds (the amount graduates can earn before making repayments) for student loans by 2.9% and confirmed the introduction of a postgraduate loan system deductible from PAYE effective 6 April 2019.

The Department for Education (DfE) has confirmed that from 6 April 2019 the thresholds will increase for tax year 2019/20 to:

• Plan 1 – £18,935, up from £18,300 for tax year 2018/19; and

• Plan 2 – £25,725, up from £25,000.

Student loan deductions will remain the same at 9% for Plan 1 and Plan 2 loans.