Image caption The threshold increase is £3,000 a year more than the Scottish government had previously committed to

The threshold for repaying student loans in Scotland is to rise by a further £3,000, it has been announced.

From April 2021, graduates will need to earn £25,000 a year before they start paying back their loans.

The Scottish government confirmed the measure as part of a package which it says will increase the support available for students.

Further Education Minister Shirley Anne Somerville also said loans not fully repaid would be written off earlier.

She told the Scottish Parliament: "I want to ensure that students are supported, not just during their studies, but after they graduate too.

"As part of our programme for government, we committed to raising the repayment threshold for student loans to £22,000 by the end of this Parliament. However, we have gone further than this.

She said she would bring forward legislation to reduce the maximum repayment period for student loans from 35 to 30 years by the end of 2018.

Repayments stopped

The changes to student loans apply to all borrowers, including those already making repayments.

If someone currently making repayments is earning less than £25,000 when the changes take effect, their repayments will stop until their salary crosses the threshold.

Ms Somerville said the changes were the first step towards realising the ambition of delivering the equivalent of the real living wage to students. This would currently be worth £8,100 a year.

Her statement follows on from an announcement at the SNP conference last weekend when First Minister Nicola Sturgeon said more than £21m would be invested in improving the financial support available to students at university and college.

Image copyright Getty Images

The package of measures means:

The bursary for care-experienced students in further and higher education will be increased this year to £8,100

The support available to these students will be in line with the Scottish living wage at a cost of about £5.5m

£16m will be invested next year in increasing college bursaries and university grants for students from the lowest-income families

The repayment threshold for student loans will be raised to £25,000 from April 2021

This year, the maximum repayment period for student loans will be lowered from 35 to 30 years.

Ms Somerville also announced that there would be an increase in bursary support for the poorest young students in higher education from £1,875 per year to £2,000.

She said that the change, combined with raising the higher education bursary threshold, will mean 13,500 students would benefit.

The government also said it would increase bursary support for independent students - essentially those who cannot rely on family support for funding - from £875 per year to £1,000, which will benefit nearly 18,000 students.

Image copyright Getty Images Image caption University and college bodies have also welcomed plans to look at the needs of part-time and disabled students

Ms Somerville said the government had taken time to consider the findings of an independent review of student funding which reported last year.

She told MSPs: "I have already welcomed the report's central premise of creating a student support system around the key values of fairness, parity and clarity.

"I want Scotland's student support system to be focused on the poorest students. This complements our wider ambitions to reduce child poverty and widen access to university."

Widen access

The student loan announcement has been largely welcomed by college and university bodies.

Alastair Sim, director of Universities Scotland, said: "I also welcome the commitment to further work to address the needs of part-time and disabled students and carers whose support needs are different.

"Having the right student support in place is a crucial art of making sure that higher education is open to everyone with the availability to benefit, regardless of background."

Shona Struthers, chief executive of Colleges Scotland, said: "We are pleased that the plight of college students has been heard.

"Student support funding is vital in helping many students, particularly from poorer backgrounds, to access high-quality courses that lead to recognised qualifications and allow them to progress towards employment and their future careers."

Susan Stewart, director of The Open University in Scotland, also welcomed the government's "commitment to consult on how part-time students can be better supported".

She said: "We can't widen access to higher education with a narrow focus on full-time students alone.

"Part-time study enables students with busy lives to participate in higher education, widening access for people in work, with disabilities, or with family and other caring responsibilities."

The National Union of Students Scotland said the support plans should "only be seen as the first step to reforming the current system".

President Luke Humberstone said: "NUS Scotland has long outlined the dangers of Scotland's rising levels of student debt and will work to ensure that increased investment is focused on non-repayable bursary.

"A number of areas need further exploration including part-time students, those on benefits, or young students in further education."