Martin Lewis issues urgent warning to anyone still repaying their student loans
Share:
More than a million Brits are eligible to claim money back on their student loan payments. Last month, the government confirmed maintenance loans and tuition fees in England were increasing in line with inflation 'to help ensure the financial stability of the university sector'. The annual cost of an undergraduate degree in England and Wales will go up from £9,250 to £9,535 in the 2025/26 academic year. The changes will apply from 1 August 2025.
Most UK students are eligible for a loan to cover the fee of their tuition, which is subject to interest from the day you take it out. According to The Student Loans Company, graduates in England leave university with an average debt of £48,470 - and they'll have to pay it back depending on which Plan they're on.
If you started your course on or after August 1, 2023, you will be on Plan 5. This applies to those studying an undergraduate course or a Postgraduate Certificate of Education (PGCE). You'll be on a Postgraduate Loan plan if you're studying a postgraduate master's or doctoral course or Plan 2 if you take out a Higher Education Short Course Loan during this period.
If you started your undergraduate, PGCE, Advance Learner Loan, or Higher Education Short Course Loan between September 1, 2012, and July 31, 2023, you'll be on Plan 2. Those who started their course before September 1, 2012, will be on Plan 1. For Wales, Scotland, and Northern Island, you can check your plan here.
If you have a Plan 1 student loan, you'll only start repaying when your income is more than £480 a week, £2,082 a month, or £24,990. This increases to £524, £2,274, and £27,295 respectively for those on Plan 2. If you're on Plan 5, you'll start making repayments when your income is over £480 a week, £2,083 a month or £25,000 a year.
