Martin Lewis has offered his latest insights on what he believes is crucial for everyone to understand about student finance. And one of his key warnings is over an 'under the radar' change that he says will see many people pay for longer.
The real student loan price tag Martin said: "The student loan price tag is often £60,000 or more which adds up, tuition fees are up to £9,250 a year, times that by three because you're ona three-year course, add in the maintenance loan and 60 grand seems normal. But you don't pay any of that, the student loan company pays tuition fees for you and it gives a maintenance loan...and actually that £60,000 price tag bears very little resemblance to what you pay.
"The loan, regardless of how much you paid unless you cleared it all, wipes after 40 years - it's gone you do not owe it anymore, you're not obligated to pay any more even if you hadn't paid a penny, after 40 years you would not have to pay any more money back. "You repay 9% of everything earned above £25,000." In this example you would only pay 9% of £1,000, equating to only £90. In the case that your debt is £50,000 but you earn £26,000 you would still only owe £90 as it's based on your earnings, not what you owe.
"Now you've got 40 years you have to pay and you start repaying at a lower level of income at £25,000 instead of the other at £27,295 - 52% are likely to clear in full. So in reality though, the vast majority of people, unless you are a high high earner are going to be repaying this student loan for most of the 40 years."