Changes to student loans

[MrsMangelsPortrait]

Have posted this in Money Matters but also posting here for traffic as I'm wondering if there are other parents of students out there with similar dilema.

Dd1 is planning to defer her place at Uni until 2023 however I've just realised that this would mean she would be affected by the changes in student loans that kick in that year.

I've been doing some research online and I seem to have found conflicting information. On one hand, if she starts in 2023 she'll be affected by the loan length rising from 30 to 40 years. On the other hand, if she starts in 2023, her interest rate, which is due to rise massively, will be fixed.

So which is the better option? Should she try to change her course to start this September instead?

I'm not a mathematician and I just can't get my head around these figures!

I'm not a mathematician and I just can't get my head around these figures!

I created an excel for ds's loan 😂 so i could put in what he could claim each year, interest rates and potential salary etc. The amount they will pay in interest is staggering.

Thanks @SeemsSoUnfair (apt user name btw!) it's so confusing and there seems to be very little clear advice being given to these kids who could be affected for half their lifetimes due to these changes.

ifs.org.uk/publications/16021 explains the latest set of changes pretty well,

and the IFS also have a pretty good student loan calculator ifs.org.uk/student-finance-calculator

Martin Lewis on Money Saving Expert talks about this. Defer or not defer. You pay more if you do defer. High earner vs low or medium earner. High earner pays off earlier so less interest. Job aspiration really does matter. The most important thing is the threshold is coming down and low earners are now going to pay. So degree, university and job prospects really do matter, more than ever.

Thank you both.

Having spent a fair bit of time researching this yesterday, dd is probably going to ask for her offers to be brought forward to start this year. If this isn't possible then I guess she is going to look into clearing.

Thankfully she has nothing big planned for next year - no trip booked or anything - and she was starting to think about going to Uni sooner anyway.