Students are awaiting their A-level results this week and GCSEs the week after (David Jones/PA)
(Picture: PA Wire)A-level students across the country will receive their exam results this week – and will find out if they have been offered a place at university.
Deciding whether or not to go to university is a major decision, let alone deciding where to go and what to study.
A major factor that will influence young people’s decision is how much university costs.
The idea of signing up for thousands of pounds of debt in the form of student loans is daunting, especially in the cost of living crisis.
But how much does university cost – and how much can graduates expect to pay back each month?
What financial help can students get?
Students can apply for student loans to cover their tuition fees and living costs.
Tuition fees cover the cost of the course and are paid directly to the university.
Meanwhile, maintenance loans are paid directly to students to help cover their living costs. The loan amount depends on household income, where they study, and where they live.
How much are university fees in the UK?
Tuition fees vary by students’ home region and where they attend university.
Students from England, Wales, Scotland and Northern Ireland who study in England will pay up to £9,250 per year.
Students from England, Wales, Scotland and Northern Ireland who study in Wales will pay up to £9,000 per year.
Students from England, Wales and Northern Ireland who study in Scotland will pay up to £9,250 a year – but Scottish students don’t pay anything.
Students from England, Wales and Scotland who study in Northern Ireland will pay up to £9,250 a year – but Northern Irish students will pay up to £4,395.
How much do undergraduate students repay?
Students will be signed up to Repayment plan 2 if they started their course on or after September 1, 2012.
Graduates will only start repaying their loans once they meet the income threshold for repayment , which is currently £27,295 a year, £2,274 a month or £524 a week in the UK.
Graduates will pay 9% of their income above the repayment threshold, which means the monthly repayment increases with salaries.
For example, someone earning £29,500 will pay around £16 a month, while someone earning £33,000 will pay £42 a month.
However, students starting courses in September 2023 will have to begin paying their loans back once they earn £25,000 a year.
How much do master’s students repay?
Master’s degree graduates will start making repayments once they meet the threshold, which is £21,000 a year, £1,750 a month or £403 a week in the UK.
They will pay 6% of their income over the repayment threshold, which means the monthly repayment increases with salaries.
For example, someone earning £22,000 before tax will pay approximately £5 per month, while someone earning £30,000 will pay approximately £45 per month.
How much interest do students pay on loans?
The government recently announced that it would cut student loan interest rates in England and Wales to help combat the cost of living crisis.
The Department of Education said it would reduce the student loan interest rates to 6.3%, after previously announcing they would be capped at 7.3%.
The change applies to those on undergraduate (Plan 2) and postgraduate (Plan 3) loans.
How are student loans repaid?
Employees who pay UK tax will have the student loan repayments taken from their monthly salary.
The Student Loan Company will give HMRC their name and National Insurance number, and HMRC will inform the employer that the employee has a student loan.
Graduates should also inform their employer that they have a student loan.
People who are self-employed will pay their student loan through the self-assessment system.
When are student loans cancelled?
Student loan repayments plus interest will be cancelled 30 years after someone is due to start making repayments. This applies to people on Plan 2 and Plan 3.
This only applies if they have made all repayments due up until that date.
