Martin Lewis on what the student loans shake-up could cost you
Money Clinic with Claer Barrett
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Student Loans - The Repayment Threshold
Olla didn't know the terms of her student loan could be changed. Students in england only start paying back their loans when they earn more than 27 thousand 275 pounds. The government is considering plans to lower that threshold, perhaps to 23 million pounds. That means a nine % tax would be charged on a much bigger proportion of your pay check. Fo somebody on a salary of 30 thousand, they'd repay 630 pounds, a jump of nearly 400 pounds a year. And break it down, that 20 pound monthly repayment would soar to nearly 53 pounds. How much debt, student debt, are you left with now around that? 65 thousand pounds.
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