Graduates are facing a £1bn stealth tax due to measures announced in the Budget. The salary threshold for repaying student loans will freeze at £29,385 from April 2027 for those who started their degrees between September 2012 and July 2023. This change means more graduates will start repaying loans sooner as their salaries increase. Graduates who make more than the threshold pay 9% of their salary above the limit towards their student loan debt.
Graduates face £1bn stealth tax
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