Reducing tuition fee repayment threshold ‘would save billions’

Cutting threshold to £19,000 would also significantly reduce write-off cost

Reducing the student loan repayment threshold to under £20,000 could save the Treasury £3.8 billion and significantly lower the proportion of loans that are written off, a report has found.

According to a study by the Higher Education Policy Institute and the London Economics consultancy, cutting the earnings threshold at which graduates start repaying their loans from the current £27,295 to £19,390 would reduce the write-off costs from 54 to 33 per cent.