The government have recently announced new changes for tuition fees and student loans in England, but what does this mean for you?

One of the biggest changes is that the repayment term for student loan will now be 40 years instead of 30. This means many students will still be paying back their student loans well into their 60’s. The government has also made changes to the income you must be making to start repaying from over £27,000 to £25,000.

If you’re currently at university the 40-year repayment won’t apply to you because the new changes only come into force for students who enrol in 2023-24. However, current students will benefit from the freeze in tuition fees at £9,250 a year, frozen until the end of the current parliament.

Another change the government is proposing, are restrictions to who can access a student loan. You may have had to passed maths and English GCSE at grade 4 or above to be considered for a loan as well as passing 2 A levels or equivalent. There is currently strong opposition to this with many people saying this policy will be too difficult to implement. There are also concerns the new rules put some students off.

So, with all these changes who is benefitting from them? Well first, the Treasury who will gain £600 million in loan repayments and lower the amount of unpaid loans that would have expired after 30 years. But if you are a high earner, you will also benefit as your loan repayments will fall by 25%. This leaves disadvantaged students, and students coming from Yorkshire and Humber, as the losers as they will see their repayments increase by, in some cases 150%.

We hope this blog has given you some information on the recent changes to student loans. If you need any help with your Sheffield student property, please do not hesitate to contact us.