Student Finance Reforms
You may have heard that the Government have announced a range of changes they will be making to the student finance system in England from academic year 2023/24 and beyond.
If you will be applying for a higher education course from academic year 2023/24 then you may be interested in finding out much more about these changes and what they will mean to you.
As the announcement was only made recently, full details are not yet available, but there are some specific details relating to tuition fees and student loan repayments which you will need to be aware of.
New students commencing study from academic year 2023-24 onwards:
There will be a new loan plan type for students who start courses from academic year 2023/24. The new loans will have:
– In-and-post-study interest rates of RPI+0%
– A repayment threshold of £25,000 a year, maintained at this level up to and including financial year 2026-27
– This threshold will be increased by inflation (RPI) from April 2027 onwards
– The loans will have a repayment term length of 40 years from the repayment due date
The new loan plan does ask graduates to repay for longer and from an income threshold of £25,000, but it also increases certainty for borrowers by reducing interest rates to match inflation only.
This ensures that, under these new terms, borrowers will not have to repay more than they have borrowed in real terms.
Maximum tuition fee caps for undergraduate degrees (encompassing full-time, part-time, and accelerated degree caps) will be held for two further years
– For full-time courses this will mean a continuation of the maximum £9,250 maximum tuition fee level
– This will be up to and including academic year 2024/25
The Government will be keeping these new loan terms under review but until more information is available you can read the initial announcement and the Department for Education Hub Blog.