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Josh graduated two years ago from an English university and is back home in London. He earns £28,500, out of which he pays £3,186 in income tax and £1,274 in national insurance (NI) contributions a year. This results in take-home pay of £2,003 a month or £24,040 a year. Despite an outcry, the salary threshold for repaying his plan 2 student loan will remain frozen at £29,385 for three years from next April, so any pay rise is likely to trigger payments. Graduates must repay 9% of earnings over the threshold.
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