repayment

In July 2023, the Education Department launched the first elements of its Saving on a Valuable Education repayment plan to cut payments and forgive low balances on federal student loans more quickly.

In 2023, loan terms were increased from 30 to 40 years and repayment threshold salaries were lowered, from £27,295 to £25,000, meaning more graduates will be repaying their loans, for longer.

The main reason, behind £146m of the total, is that repayments were taken from people despite them not earning above the annual threshold at which point repayments automatically kick in.

However, more than one million borrowers on tracker and variable deals could see an immediate fall in their monthly repayments if the Bank cuts rates.

"Conditions of our funding are that we would seek repayment if the business becomes insolvent," said a spokesperson.