Big changes will soon be introduced for student loans from September of this year
Money-saving expert Martin Lewis has issued a warning to future students looking to start university this year.
According to the government, this means a graduate earning £28,000 would pay back £17 a month. Furthermore, interest rates will be cut for new students so their loan balance rises with the rate of inflation while the repayment period will be extended to 40 years.
He goes on to explain that new university started will pay nine per cent of everything they earn over £25,000 and will begin paying more at every level they earn, similar to taxes. He also highlighted that, currently, you pay back the loan until it's either cleared or after 30 years. "And if you still got a high retirement and you've been a mature student you'd be paying in that if you're earning over the £25,000..." He continues: "The next and the one positive change here is currently the interest that is added to your loan account is inflation RPI - the higher rate - plus three per cent while you're a student..."