Scottish Student loan repayment threshold to rise to £25,000 10 July 2018
In Scotland graduates will need to earn £25,000 a year before they start paying back their loans from April 2021.
The First Minister announced that as part of a package of measures: • the bursary for care-experienced students in further and higher education will be increased this year to £8,100, bringing the support available in line with the Scottish living wage at a cost of around £5.5 million • £16 million will be invested next year in increasing college bursaries and university grants for students from the lowest income families and expand access to them, and • the repayment threshold for student loans will be raised to £25,000 from April 2021, and this year the maximum repayment period for student loans will be lowered from 35 to 30 years. The Programme for Government 2017-18 had previously committed to raising the repayment threshold for student loans to £22,000 by the end of the Parliament, however Nicole Sturgeon confirmed that the Scottish Government will go further and increase it to £25,000 instead.
CIPP comment The threshold increase for Scottish students will need to be ratified; we will keep the payroll profession updated accordingly.
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Student loan threshold changes for 2019-20 28 August 2018
The Department for Education (DfE) has confirmed the annual updates to the Interest Rates and Thresholds of Income Contingent Student Loans.
The current threshold for 2018-19 for Plan 1 is £18,330 and the DfE have confirmed that from 6 April 2019 the threshold will rise to £18,935 for Plan 1. Earnings above £18,935 will be calculated at 9%.
The current threshold for 2018-19 for Plan 2 is £25,000 and the DfE have confirmed that from 6 April 2019 the threshold for post 2012 loans will rise to £25,725 for Plan 2. Earnings above £25,725 will be calculated at 9%.
The DfE has introduced a new loan type from 6 April 2019, Postgraduate Loan (PGL). The threshold for 2019/20 is £21,000. Earnings above £21,000 for PGL will be calculated at 6%.
This information was provided by HMRC’s Software Developers Support Team (SDST).
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Postgraduate Loans overview for Software Developers 12 July 2018
HMRC’s Software Developers Support Team (SDST) has provided an overview of how the postgraduate loan repayments will work from April 2019.
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