New graduates face an uphill battle as government announces freeze on salary threshold for student loan repayments. Under the new plan, from April 2027, students will not have to begin repaying their debts until they earn £29,385 per year - a significant increase of £915 from the current threshold of £28,470.
The National Union of Students (NUS) has expressed concerns that this freeze could leave many young people struggling to make ends meet. "Graduates are already facing a challenging job market coupled with ever-increasing financial pressures from the cost of living," said Alex Stanley, NUS vice-president for higher education. The organization fears that students will be forced to repay their loans at a time when they can barely afford basic necessities like food and rent.
The current national living wage is £12.21 an hour, but with future increases projected to push some graduates into relatively low-paid jobs close to having to repay their debt. According to the Office for Budget Responsibility (OBR), by 2030, a full-time worker on the minimum wage will be earning around £28,995 - just shy of the new repayment threshold.
This freeze is set to affect students who joined university in England and Wales between September 2012 and July 2023, taking out plan 2 loans. Stanley warned that this could lead to graduates having to repay their debts much sooner than they should, with the NUS advocating for a more generous grace period.
Critics argue that this measure will disproportionately affect those from financial privilege, as their salaries stretch further. The Treasury maintains that ensuring students repay more of their loan is fair for workers who have not gone to university, but opponents see it as a regressive move that could exacerbate existing financial inequalities.
The National Union of Students (NUS) has expressed concerns that this freeze could leave many young people struggling to make ends meet. "Graduates are already facing a challenging job market coupled with ever-increasing financial pressures from the cost of living," said Alex Stanley, NUS vice-president for higher education. The organization fears that students will be forced to repay their loans at a time when they can barely afford basic necessities like food and rent.
The current national living wage is £12.21 an hour, but with future increases projected to push some graduates into relatively low-paid jobs close to having to repay their debt. According to the Office for Budget Responsibility (OBR), by 2030, a full-time worker on the minimum wage will be earning around £28,995 - just shy of the new repayment threshold.
This freeze is set to affect students who joined university in England and Wales between September 2012 and July 2023, taking out plan 2 loans. Stanley warned that this could lead to graduates having to repay their debts much sooner than they should, with the NUS advocating for a more generous grace period.
Critics argue that this measure will disproportionately affect those from financial privilege, as their salaries stretch further. The Treasury maintains that ensuring students repay more of their loan is fair for workers who have not gone to university, but opponents see it as a regressive move that could exacerbate existing financial inequalities.
this new plan is so unfair ! 
i feel so bad for all the grad's who are already struggling to make ends meet 
they're gonna have to work so much longer before they can even think about repaying their loans 
and it's not just about the money, it's about the stress & anxiety that comes with having a massive debt burden 
we need to support these young ppl & advocate for more flexibility in their loan repayment plans 
. We didn't even think about loan repayments like this back then! It's crazy how much pressure these young people are gonna be under. I remember when £28,470 was a decent wage, but now it's more like the minimum for struggling? 
What's wrong with giving 'em a bit more leeway, you know? A year or two of debt-free life isn't gonna hurt anyone! 
And those who are worried about their finances will just have to get creative and find ways to make ends meet... that's what us young folks did back in the day 
. I'm not saying it's a bad idea, but maybe they could've picked a better time to announce this? April 2027 feels like a bit of a squeeze 
.
the government's decision to freeze student loans repayment threshold until 2027 is like, so harsh 
especially for those grad uni in 2012-2023 who are already drowning in debt 
and critics are right, this will only affect those from lower-income backgrounds more 
my friend's cousin dropped uni after 2 yrs and now she's stuck with £50k of debt 
! Like, I get the government trying to balance the books and all, but freezing salary threshold on student loan repayments? That's just cruel 
. These young people are already struggling to find decent jobs and make ends meet, let alone pay off thousands of pounds in debt. £29,385 is hardly a livable wage 
. And what about those who don't come from wealthy backgrounds? They'll be paying way more than their fair share 
also, what about those who don't have a degree and still gotta pay off loans? doesn't that count for anyone? 
the government is trying to help out students by giving them more time to repay their loans, but at the same time they're making it harder for low-paid graduates to afford living costs 
one graph goes up and up, representing the salary threshold for loan repayment, while the other graph remains flat 
and stays below £28,470
what's the solution?
. Most entry-level jobs barely pay above £18k, let alone enough to justify starting debt repayments 
. A longer grace period or more flexible repayment plans would be way better than this 
. This plan is just gonna push more people into debt... I hope the gov doesn't expect them to magically figure out how to pay off £30k+ in loans 
. And what's with the "fair for workers who didn't go to uni" angle? That sounds like just an excuse to target those from lower-income backgrounds 
... I guess what I'm saying is, let's not get too hung up on the negatives - there might be some silver linings here 
... think about all those new grads just tryna get on with life & start paying off their student loans, but now they gotta wait till they're making £29k+ to even begin 
I'm so worried about this new plan... £29,385 feels super low to me! 
I think the NUS has a point here - this freeze could really hurt some students who are struggling to get by.