Student loan changes
Last year the Government announced significant Student Loan changes that will affect students in England who are starting university in September 2023. This article covers what the changes are, who they are for, and how this might affect you.
Repayments for student loans are set to rise in 2023/24
This means:
- The Student loan repayment threshold will drop from the current £27,295 to £25,000. This will increase each year from the 2027–28 financial year in line with the Retail Price Index (RPI).
- The student loan repayment changes will also mean that graduates will now need to repay their loans for up to 40 years rather than it being cleared after 30 years.
- The interest rate will be cut so that it’s only the rate of RPI rather than RPI plus a percentage of up to 3% as it is currently.
The difference between Type 1 and Type 2 student loans
- an English or Welsh student who started an undergraduate university course in the UK before 1 September 2012
- a Northern Irish student who started an undergraduate or postgraduate course anywhere in the UK on or after 1 September 1998
- an EU student who started an undergraduate course in England or Wales 1 September 1998, between 1 September 2012
- an EU student who started an undergraduate or postgraduate course in Northern Ireland on or after 1 September 1998
You’re on Plan 2 if you’re:
- an English student who started an undergraduate university course anywhere in the UK between 1 September 2012 and 31 July 2023
- a Welsh student who started an undergraduate course in the UK on or after 1 September 2012
- an EU student who started an undergraduate course in England between 1 September 2012 and 31 July 2023
- an EU student who started an undergraduate course in Wales on or after 1 September 2012
- someone who took out an Advanced Learner Loan between 1 August 2013 and 31 July 2023
- someone who took out a Higher Education Short Course Loan on or after 1 September 2022
What is student loan plan 5?
Every student starting University after 2022/23 will fall under this plan.
You’re on Plan 5 if you’re:
- an English student who started an undergraduate course anywhere in the UK on or after 1 August 2023
- an EU student who started an undergraduate course in England on or after 1 August 2023
- someone who took out an Advanced Learner Loan on or after 1 August 2023
Are postgraduate loans changing?
You’re on a Postgraduate Loan repayment plan if you’re:
- an English or Welsh student who took out a Postgraduate Master’s Loan on or after 1 August 2016
- an English or Welsh student who took out a Postgraduate Doctoral Loan on or after 1 August 2018
- an EU student who started a postgraduate course on or after 1 August 2016
* This article was reviewed on 21/02/2023
Frequently asked questions
Maintenance Loan The UK Government offers a maintenance loan to help with living costs. The amount the student receives depends on where the student lives, where they study and their household income.
Below is the Government Student Finance website page to find out more information.
Student finance for undergraduates: New full-time students – GOV.UK (www.gov.uk)
How much you repay depends on which plan you’re on.
Each plan has a different threshold for your weekly or monthly income. You repay:
- 9% of the amount you earn over the threshold for plans 1, 2, 4 and 5
- 6% of the amount you earn over the threshold for the Postgraduate Loan
If your income is under the threshold of £25,000 annually for students on Plan 5, who started university in or after August 2023, then you will not pay anything back. Interest starts being added to your loan from when you get your first payment.
With the student loan repayment threshold 2023/24 changing, it is important that you understand which student loan plan you are on, what your repayments are, and how these new announced changes will affect you.
Further information
For additional information on student finance, visit the Student finance for undergraduates: Overview – GOV.UK (www.gov.uk) web page. If you are considering studying with Regent College London this year, follow the link below to browse our courses.
Related posts
Nurturing Academic Excellence
Why You Should Study HND in Engineering?
What is the difference between HNC and HND?
Benefits of studying for a Master’s degree
Why more women should study law?
