You’ll now only have to start paying your student loan if you earn over £25,000

English and Welsh students who graduated after 2012 (when fees rose to £9000 a year) will now only start repaying their student loans after they start earning over £25,000 a year.

The previous student loan repayment threshold was £21,000, meaning you've got a few more fun years in your grad scheme and zone three house share before you have to start paying it all back.

Happy about the new threshold

According to the Department for Education, over 600,000 students could benefit from the move to a higher repayment threshold as they have estimated students could save up to £360 a year.

The change will also lower the repayments of those earning over £25,000, as the percentage of salary paid back will be less.

Additionally, the Institute for Fiscal Studies (IFS) has said middle-earning graduates will benefit the most, saving nearly £16,000 in repayments.

Meanwhile, those earning under the new threshold will still see a reduction in payments, though not to the extent as those earning over £25,000. The highest earners will see very little change.

Interestingly, this is all coming at a higher cost to the government who implemented the higher fees back in 2012, as IFS economist Laura van de Erve has said "The long-run cost to the government will increase by more than £2bn a year, an increase of nearly 40 per cent."