New deferment threshold and interest rate confirmed
The Department for Education (DfE) has confirmed to Erudio Student Loans that from 1 September 2021 to 31 August 2022 the new deferment threshold for mortgage-style student loans will be a gross annual income of £36,284 (equivalent to £3,023.66 per month). The new interest rate for the same period will be 1.5%.
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 1.5% in March 2021 and this will be the interest changed on loans from 1 September 2021 to 31 August 2022.
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 Form (DAF) is received.
If you are unsure how to complete any particular section of the DAF, please refer to the How to Guide in the first instance. Otherwise, please call us on 0333 003 7188 before you submit your application, to help reduce the chance of your application being considered incomplete.