The House of Commons has voted for changes to graduate contributions for 2012/13. Under government proposals graduates will not make a contribution towards tuition costs until they are earning at least £21,000, up from the current £15,000.
The repayment will be 9% of income above £21,000, and all outstanding repayments will be written off after 30 years. This means all graduates will pay less per month than they do under the current system. The £21,000 earnings threshold will also be updated annually in line with earnings from April 2016, when the majority of students who commence a three year degree course in September 2012 will become liable to repay.