Student loans are not like other loans, with money expert Martin Lewis explaining how 'the interest added isn’t the interest paid'
Student Loans Company data, which were released following a BBC Freedom of Information request, showed the average amount ofamount and duration of the loan, though, does differ depending on which plan, of the two available, you are on.If you end up earning less than £22,015, you do not need to make any loan repayments.
If your annual income turns out to be less than the yearly threshold of the plan you are on – perhaps because you were paid a lower bonus than you had expected – then you can ask for a refund at the end of the tax year.The government, though, announced in 2022 that the threshold would remain at £27,295 for 2022-23. As a result, graduates will end up paying approximately £110 more per year than they would have if the threshold had been raised in line with earnings .
However, if you were paid the first loan before 1 September, 2006, then the loan is automatically written off at the age of 65.As a result, 83 per cent of all English student loans will never be totally repaid, according to the Institute for Fiscal Studies’ estimates.Because the sum of student loans only goes up over time, in line with the set interest rates, in theory, it makes sense to pay off that debt early with bigger lump sum payments.