how much will you pay?

Student loan repayments will fall next year after the earnings threshold at which graduates must pay off their debt is raised.

From April 6 2020 the repayment threshold for new graduates will become £26,575, up from the current £25,725, which means they will pay back almost £100 less a year.

Graduates start repaying their student loan the April after they finish university, making contributions of 9pc of their pre-tax income above the threshold.

The change means graduates earning £30,000, for example, will repay £308.25 a year, down from the current £384. A higher earner on a £50,000 salary will make annual repayments of £2,108.25, compared to £2,184.

Those who left university before 2012 will also see the income level at which they begin paying back their student loans rise in April to £19,390 from the current £18,935. Their loans are also repayable at a rate of 9pc above the threshold.

Graduates in this group earning £30,000 a year will pay £954 a year under the new threshold, down from £995. Those earning £50,000 will repay £2,754 a year, down from £2,795.