Have you seen the New Student loan information?
September 2023 will see a huge shift in how things work for student finance. There is lots of help and advise across a variety of platforms and we have put together the main points to be aware of for you to look at.
Here is a breakdown of how we understand it:
- On the new plan 5 you will start to make repayments at the lower threshold of £25,000. Instead of the above £27,295 on plan 2.
- You will pay the loan off over 40 years instead of 30 years. After this time what ever debt is left is wiped.
- Interest rate is better as it will be based on the RPI. Removing the extra 3% charge there is on plan 2.
- State pays 19p to £1 but with the longer length to the plan it means 52% of students clear their debt in full compared to the 23% on plan 2.
Take a look at Martin Lewis money expert for more in depth information: