New deferment threshold and interest rate confirmed
The Department for Education has confirmed to Erudio Student Loans that from 1 September 2023 to 31 August 2024 the new deferment threshold for mortgage-style student loans will be a gross annual income of £38,255.00 (equivalent to £3,187.91 per month). The new interest rate for the same period will be 13.5%.
The deferment threshold is defined in the Education (Student Loan) Regulations 1998 as 85% of the lender's estimate of the average earnings of all full-time employees in Great Britain for the January when the level will apply. The threshold is calculated annually by DfE, using data published by the Office for National Statistics.
The interest rate charged always corresponds with the published Retail Price Index (RPI) from the previous March. RPI was 13.5% in March 2023 and this will be the interest charged on loans from 1 September 2023 to 31 August 2024.
As is the case for all deferments reviewed by the Student Loans Company Erudio Student Loans, deferment applications will be assessed on the threshold applicable on the date the Deferment Application is received.
If you are unsure how to complete any particular section of the DAF, please call us on 0333 003 7188 before you submit your application, to help reduce the chance of your application being considered incomplete.
If you are experiencing financial difficulty, take a look at our Financial Difficulty page for details of independent organisations who can offer free, impartial advice.