 As pupils open their A-level results and the scramble for University places begins, they will face major changes to student loans from September. The student finance loan is given to all students that apply for it and helps pay for rent, food and general living costs when at university. How much students get depends on their parents' income (or partner if they are a mature student) – and loans for those heading off to uni from this September will be different to previous years. So what are the main changes to expect and do they apply across the whole of the UK? Let's find out. What are the changes to student loans? A new plan Anyone taking out a student loan in England for a course starting on or after August 1, 2023 will be on a new scheme, known as Plan 5. The changes affect those applying to Student Finance England (Picture: Getty Images) Those in Scotland, Wales and Northern Ireland will not be affected by the changes and remain on those countries' existing plans. Everyone in England who is already on another Plan (eg 1 or 2) will be unaffected. Repayments Essentially, those on Plan 5 will start paying the loan back sooner – when they're earning over £480 a week, £2,083 a month or £25,000 a year. Annual earnings at which UK student loan repayments start Plan 1 – £22,015 Plan 2 – £27,295 Plan 4 – £27,660 (Scotland) (Scotland) Plan 5 – £25,000 Postgraduate loan – £21,000 This compares to repayments kicking in at £524 a week, £2,274 a month or £27,295 a year for those on Plan 2 (people who started uni on or after September 1, 2012). The earliest anyone on Plan 5 will start making repayments is April 2026, even if they drop out, and the payments are taken, as now, either through pay-as-you-earn (PAYE) or via self assessment. Students pay: 9% of income over the threshold on Plan 1, 2, 4 or 5 6% of income over the threshold on a Postgraduate Loan plan Interest rates Students usu){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
As pupils open their A-level results and the scramble for University places begins, they will face major changes to student loans from September.
The student finance loan is given to all students that apply for it and helps pay for rent, food and general living costs when at university.
How much students get depends on their parents’ income (or partner if they are a mature student) – and loans for those heading off to uni from this September will be different to previous years.
So what are the main changes to expect and do they apply across the whole of the UK? Let’s find out.