Latest news with #StudentLoansCompany
BBC News
09-07-2025
- Business
- BBC News
How do student loans work and when are they written off?
Tuition fees in England and Wales will rise in August, after universities said they needed more students will leave university with more debt as a result of the increase. How do student loans work in the UK? The details vary according to where in the UK you live, but student loans are typically made up of:a loan for tuition feesa maintenance loan for living costsMost people are entitled to the tuition fee element, which is equal to the annual cost of their August 2025, the cost of an undergraduate degree in England and Wales is £9,535 a year, up from £9, separate maintenance loan is intended to cover accommodation, food, books and loans are means tested, so the amount you get depends on your family's household income. You might get extra money if you are disabled, or have you are under 25 and have no contact with your parents, you might be able to apply as an "estranged student". This means your parents' financial situation is not taken into by the Higher Education Policy Institute published in May 2024 suggested maintenance loans in England typically only cover about half the cost of living, and even less for students in Student Loans Company (SLC) says graduates in England who started repaying their loans in the financial year 2024-25 owed an average of £53,000. How much can I borrow for living costs? The amount of maintenance help available varies across the students in England and Wales can borrow more for day-to-day living costs in 2025-26 than in previous maximum maintenance loan for students from England living away from their parents outside of London, for example, will be £10,544, up from £10,227. For students from Wales, it will be £11,345, up from £11,150. Welsh students may also be entitled to maintenance grants, which do not have to be paid from Wales studying away from home can borrow up to £11,345 from August, up from £11,150. In Scotland, the maximum annual maintenance loan is £9,400 for under-25s. Students can also apply for a number of bursaries and from Northern Ireland who are studying away from home can borrow up to £6,776 (£9,492 if they go to London).Students from England can use the loans calculator on the Student Finance England websiteStudents from Wales can go to Student Finance WalesStudents from Scotland can go to Student Awards Agency ScotlandStudents from Northern Ireland can go to Student Finance Northern Ireland How do I get my student loan payments? The tuition fees are paid directly to your university or education maintenance loan is paid directly to your bank account in are made at the start of each term in England, Wales and Northern Ireland, and monthly in order to be paid you'll need to register at your university or college. You'll usually do this in the first week of your course, and you may have to take along your student finance entitlement England you should get a text from the Student Loans Company a few days before to let you know the maintenance loan is on the can apply for funding up to nine months after the first day of the academic year for your on where you live, you will need to apply through:Student Finance EnglandStudent Finance Walesthe Students Awards Agency Scotland, or Student Finance Northern Ireland How much interest will I be charged? You are charged interest on the loan from the day you take it out, but the amount varies across the is important to understand that the terms and conditions of the loan and repayments can change after you have borrowed the money. Future interest rate rises apply to all student loans, not just new students in England, the interest rate is normally set at the retail price index (RPI) measure of inflation. The rate usually updates every September, but can also change throughout the is currently 4.3% for anyone who started university in 2023 or students from:Wales, the rate is up to 7.3% depending on your earningsScotland, it is 4.3%Northern Ireland, it is 4.3%.The amount graduates pay back depends on how much they earn. When do I have to start paying back my student loan? You make one payment to cover both your tuition fees and maintenance loans. But you do not have to start repaying your loan until you earn a certain amount of money after graduation. You generally repay 9% of the amount you earn above this threshold for students in England who started university in 2023 or later, is £25, Wales it is £28,470, in Scotland £32,745 and in Northern Ireland £26, do not have to start making payments until the April after you leave your are made automatically through the tax people choose to make extra repayments to clear some or all of their loan early - there is no penalty for doing this. Can I get a refund if I pay the wrong amount? In some cases graduates have had repayments wrongly deducted from their wages. For example, they may have had money taken before the April when they become liable, or after their loan had been repaid in their employer may have put them on the wrong repayment plan. Payments may also have accidentally been triggered when graduates earned more than the monthly threshold - perhaps as a result of working extra shifts or getting a bonus - but did not exceeded the annual limit. These incorrect repayments can be over £61m was given back to 216,300 customers in the 2023/24 tax year. The average refund was £280. In May 2024, the Student Loans Company introduced a digital refund service, which was accessed by more than 400,000 people in the first six months. You can check whether you are entitled to a refund on the SLC website. Any overpayments you have chosen to make cannot be refunded. Former students urged to check for loan refunds When are student loans written off? In England, students starting university in 2025 will see their loans written off after 40 years, regardless of how much they may still Wales and Scotland this happens after 30 years and in Northern Ireland after 25 still have to repay your student loan if you leave your course early.
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Business Standard
26-06-2025
- Business
- Business Standard
Want a UK degree? You could graduate with over Rs 62 lakh in debt
Students in England are now leaving university with average debts of £53,000 (nearly ₹62.43 lakh) according to new data from the Student Loans Company (SLC). The figure marks a 10% rise from last year's average of £48,270 and reflects a growing dependence on loans to meet rising living expenses. The SLC's latest release for the 2024–25 academic year reveals a stark gap in borrowing across the UK. In Scotland, where local students do not pay tuition, average debt is £17,000. In Northern Ireland it stands at £28,000, while students in Wales owe around £39,470 on average. As prices climb, many students are taking on paid work during term time to manage their finances. A survey by the Higher Education Policy Institute found that 68% of full-time students in the UK are now working, up from 56% a decade ago. The average working week is now 13 hours—more than at any time in the last ten years. Meanwhile, nearly 3 million graduates are repaying student loans. According to the SLC, 40% of those required to pay are making monthly repayments averaging £1,100 in 2024–25. The size of the student loan book in England has soared to £266 billion—up from £64 billion just ten years ago. It is expected to grow further, with the government planning to raise domestic tuition fees from £9,250 to £9,535 starting September 2025. Universities under pressure Despite the rise in fees and borrowing, universities are facing growing financial uncertainty. A recent report by the National Centre for Entrepreneurship in Education found that 25% of university leaders believe their institutions will need major restructuring to remain viable. Over half said financial stability was now their top concern, while 28% named international student enrolment as a priority. A separate study by the Tony Blair Institute noted that real-terms income from domestic tuition has dropped by nearly a third since 2012 due to inflation. The report warned that possible changes to student visa rules—such as a 6% levy on international fees, tighter compliance measures and reduced post-study work options—could disproportionately affect post-1992 universities that rely more heavily on international enrolments. 'Universities with lower international rankings and former polytechnics had weaker finances and were most reliant on international students,' said Alexander Iosad from the institute. 61% of students borrow to pay rent Rising rent costs are placing further strain on students, particularly international ones. According to a global student accommodation platform, rent now consumes a larger share of student budgets than ever before. 'Spending on student housing in the UK has jumped 15 per cent, driven by rising rents, an influx of international students and a growing preference for higher-end purpose-built student accommodation (PBSA),' Mamta Shekhawat, founder of told Business Standard. 'The 15 per cent increase in the proportion of student budgets dedicated to accommodation is a clear indicator of a worsening affordability crisis,' she added. 'Without immediate and effective interventions, the rising cost of accommodation will continue to risk student wellbeing, academic success, and the fundamental principle of equitable access to higher education in the UK.' Of all students approaching for UK housing, 52% were Indian. PBSA prices rising faster than maintenance loans The average cost of PBSA now stands at £13,595 per year for 2024–25, up from £11,500 in 2022–23—an 18% increase in just two years. In London, average monthly rent is £1,211, far above Northern Ireland's £904. Nationally, rent rose 8% in early 2025. In cities like London, Manchester and Edinburgh, annual increases have ranged from 8% to 12%. Though PBSA comes with amenities like en-suite bathrooms and common spaces, its cost often outpaces available loans. In London, the maximum maintenance loan is £13,348, falling short of average rent for PBSA. To bridge the gap: 61% of students have borrowed money 36% from family or friends 25% via loans, credit cards or overdrafts Many have increased their work hours during term, which has raised concerns around academic performance and mental health said its services include verified listings, budgeting tools and tenant rights information to help students navigate the UK housing market. International student numbers rising despite cost pressure In the 2023–24 academic year, more than 600,000 international students were enrolled in UK universities. That number is expected to rise, putting further pressure on housing. But supply has not kept up. The UK has around 678,000 PBSA beds, while demand is estimated at 1.4 million. A fall in landlord participation due to mortgage costs has also reduced the number of shared rental houses. Why Indian students still choose the UK Despite rising costs, Indian students continue to choose the UK for its prestigious institutions. Imperial College London ranks 2nd in the QS World University Rankings 2025, followed by the University of Oxford at 3rd and the University of Cambridge at 5th. University College London comes in at 9th. According to the Higher Education Statistics Agency, Indian student enrolment rose by 39% in 2022–23 to reach 173,190—surpassing Chinese student numbers for the first time since 2018. Between April and June 2023, more than 16,185 student visas were issued to Indian nationals. The UK is targeting 600,000 international students by 2030, according to ICEF Monitor. The Office for National Statistics reported that inflation in the UK was 3.5% in the 12 months to April, driven by rising household energy and water bills. The Bank of England expects inflation to tick up again later this year. Interest rates have been cut four times since August 2024, now standing at 4.25%.
The Guardian
20-06-2025
- Business
- The Guardian
Students in England now graduate with average debt of £53,000, data shows
Students in England are finishing their degrees with government loans averaging £53,000, a jump of 10% in a year, as they increase their borrowing to meet the rising cost of living. The Student Loans Company (SLC) has released figures showing individual loan balances were £5,000 higher in 2024-25 than a year earlier, when the average in England was £48,270. In comparison, students in Scotland – where undergraduate tuition remains free for local students – finished with just £17,000 in government loans. Those in Northern Ireland accrued £28,000 in debt and those from Wales £39,470. Rising costs also mean more students are taking on paid work during term time. A survey published by the Higher Education Policy Institute found 68% of full-time students worked for an average of 13 hours each week, the highest rate in the decade the survey has been conducted. The SLC reported that 62% of former students who are liable to repay their loans are in the UK tax system, with nearly 3 million (40%) making repayments averaging £1,100 in 2024-25. The government's total student loan book for England has hit £266bn, up from £64bn 10 years ago after the introduction of £9,000 annual tuition fees and loans. That figure will rise more quickly from next academic year after the government raised the tuition fee for domestic students from £9,250 to £9,535 from September. The extra income is unlikely to solve higher education's financial woes, as the government plans to reduce the number of international students and competition between universities for domestic students intensifies. Research by the National Centre for Entrepreneurship in Education found that a quarter of the sector's leaders say their institution will need a 'complete overhaul' to survive the crisis. More than half of the leaders surveyed said financial stability was now their 'top institutional priority', while 28% said that international student recruitment was their most important activity. A new report by the Tony Blair Institute found that as tuition fees from UK students have been eroded by inflation, falling by nearly a third in real terms since 2012, many universities now rely on international student fees to cross-subsidise courses for domestic students. The institute warned that a group of universities are now vulnerable to changes to student visas that the UK government is considering as part of its immigration white paper, including a 6% levy on tuition fees, stricter compliance regulations and a reduction in the amount of time international students can spend working in the UK after completing their course. Alexander Iosad, the institute's director of government innovation policy, said universities with lower international rankings and former polytechnics had weaker finances and were most reliant on international students, putting them most at risk from any visa changes. The report says: 'As the government seeks to reform the immigration system, it is worth considering the interplay of these changes with the broader need to reform the higher education funding system so that it is put on a more sustainable basis.'
Yahoo
12-06-2025
- Business
- Yahoo
‘I'm a 72-year-old student. Labour shouldn't pull the plug on university loans'
Carole Taylor is preparing to start her second year of university in September. But she's not a typical student – she's 72. 'I've been retired. It's quite boring,' she says. 'You join things, I am an avid joiner of things, and nothing is very important because everybody is on the retirement wheel. It very quickly descends into talking about health problems.' The grandmother-of-two is studying English Literature and Creative Writing at the University of East Anglia. To fund her tuition fees, Taylor has taken out a student loan. Currently, a year's tuition for a student in England is £9,250, but this is set to rise in September to £9,535. But from 2027, students like her – those aged over 60 – will no longer be able to take out government-backed loans to cover their university fees. Taylor hopes that she will be able to finish her degree before that, but says she's frustrated for others who won't get the same opportunity. 'It's just very hard to think of them stopping it. Don't pull the plug on us! 'We're a learning, growing, thriving group of people who don't want to be consigned to the care system just yet.' Last year, more than 1,000 students over the state pension age of 66 borrowed from the Student Loans Company (SLC) to cover their fees, data provided to The Telegraph under Freedom of Information rules revealed. More than 3,800 students over the age of 60 took out loans, with 1,824 also taking out maintenance loans. Since 2020, 18,127 loans have been taken out by students over the age of 60. Around £20bn a year is loaned to 1.5 million students, according to a briefing by the House of Commons. The value of outstanding loans is forecast to hit £500bn by the late 2040s, government predictions show. They are only repaid once the graduate earns over a certain threshold, which is currently £25,000. The outstanding loan is then wiped out either 30 or 40 years after the degree is finished – depending on when the student started. For older students, this means that loans are often not repaid at all. The outstanding loan balance for those aged over 60 is close to £50m, according to the SLC. The 'Lifelong Learning Entitlement' will replace the existing higher-education funding system and will provide all new learners with a tuition fee loan entitlement to the equivalent of four years of post-18 education. But tuition fee loans for those aged over 60 will be specifically banned. Taylor left school at 16 and went to work for the gas board with her mother, before moving to Norwich and having her children. She did a foundation year before starting her degree because she didn't have A-levels, so she has already been studying for two years. She planned to do a master's degree, if she could afford it, once she had finished her undergraduate studies. But she won't get any government funding to do it because people aged over 60 are not eligible for student loans to fund postgraduate courses. She says: 'I never entered into it thinking, 'Oh great, I've got a freebie, I don't have to pay this back.'' Taylor says that she has a plan to repay her loans. Having lost her son Jonathan to addiction, she did a counselling course in 2009, and then did voluntary work in prisons. She wants to create a series of books for children of prisoners and addicts. Existing schemes allow prisoners to record video messages of themselves reading books for their children to play before bed, as she knows from her previous experience in the system. 'I started working in rehab just after he died,' she says. 'It was very, very difficult. It's something that hits you all the time.' Taylor says the work helps her feel close to her son. She's won some funding from the university to help develop her idea further, and she hopes to turn it into a viable business. Currently, student loans are wiped at death. But Taylor suggests that older students might be happy to leave a contribution in their will to pay down their debt – a possibility she thinks hasn't been properly investigated. 'A lot of older students are happy to contemplate paying their tuition loans back in time. I think some people will factor it into their wills,' she says. The septuagenarian says that the studying keeps her active. She walks 45 minutes to campus each morning and she says being around younger students is very rewarding. 'The university has been terrific. They've been very welcoming. I find no problem with younger students, they're all very supportive, very friendly and very open. I feel that, as mature students, we provide an anchor for younger students who are coming into student life and leaving home for the first time,' she says. Professor Ian Pickup, interim deputy vice-chancellor at the Open University, said: 'The decision to end access to tuition fee loans for over 60s from January 2027 will work against the need to help support older adults, particularly those in work, to access education and training to upskill, retrain and update their skills. 'There needs to be further consideration about how to support this cohort in accessing the skills offered by higher education if they are to become unable to access funding via the student finance system at a time when the population is ageing and the country is striving for economic growth.' A Department for Education spokesman said: 'This Government is committed to breaking down barriers to opportunity and boosting economic growth, ensuring we have a workforce with the skills for the 21st century. This includes supporting older students who want to go to university to reskill. 'However, we are also committed to maintaining a sustainable student finance system which is fair to students and to the taxpayer. 'University is not the only option for older learners. Despite the challenging fiscal environment we have inherited, we are spending over £1.4bn in the next financial year on the Adult Skills Fund.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
22-05-2025
- Business
- Yahoo
Labour to ban over-60s from taking out student loans
Did you go to university in your 60s? We want to hear if it was a success or not. Get in touch with us money@ Labour is set to ban over-60s from taking out student loans after taxpayers were saddled with £50m in unpaid debt. A shake-up of higher education funding in England will end a clause which allows older learners to take out loans which they are unlikely to ever repay. Last year, more than 1,000 students over the state pension age of 66 took money from the Student Loans Company (SLC) to cover their fees, data provided to The Telegraph under Freedom of Information rules revealed. More than 3,800 students over the age of 60 took loans, with 1,824 also taking out maintenance loans. Since 2020, 18,127 loans have been taken by students over the age of 60. This means that some pensioners could have received as much as £15,829 in government support, with a full maintenance loan on top of a full new state pension. The outstanding balance for those over 60 was £49,011,160. It comes as Labour doubles down on a Sunak-era commitment to ban those over the age of 60 from taking money from the Government to pursue degrees. The 'Lifeline Learning Entitlement' will replace the existing higher-education funding system and will provide all new learners with a tuition fee loan entitlement to the equivalent of four years of post-18 education. A spokesman for the Department for Education said: 'From January 2027, tuition fee loans will no longer be available to those aged 60 and over.' Tom Allingham, of Save the Student, which provides financial advice to undergraduates, said: 'While the current system creates a generational divide – students aged 60-plus are far less likely to repay their loans, so for many, their degrees are effectively free – we believe the decision to limit student loans to the under-60s only is a step backwards, as it makes it much more difficult for older students to pursue higher education. 'Instead, we believe tuition fees should be abolished, allowing students of any age to gain a degree free of charge.' Student loans can be taken out to cover tuition fees – which are set to rise to £9,535 in September – and living costs. The amount that can be borrowed depends on the financial situation of the student in question, and the loans are not repaid until graduates earn over a certain threshold. This means that those aged more than 60 when they take out loans are unlikely to repay their debt at all – unlike those who complete their studies when they're younger. The average graduate in England last year was £48,470 in debt when they started repaying their loan. The ten most indebted students owe a collective £2.7m, with one on the hook for nearly £300,000 for their studies. Liz Emerson, of the Intergenerational Foundation think tank said: 'While lifelong learning should be open to all who have never been able able to access higher education before, there is an obvious intergenerational unfairness if younger generations have to continue to pick up the bill for these older students who will obviously never pay back their student loans. 'This is another subsidy from young to old.' Approximately £20bn a year is loaned to 1.5 million students, according to a briefing by the House of Commons. The value of outstanding loans is forecast to hit £500bn by the late 2040s, government predictions show. Debts to the SLC are wiped entirely after either 30 or 40 years, depending on when the loan was taken out. A Department for Education spokesman said: 'This Government is committed to boosting opportunity and economic growth by building a skilled workforce, while ensuring the student finance system remains fair and sustainable.' 'The dire situation we inherited has meant this Government must take tough decisions to put universities on a firmer financial footing, so they can deliver more opportunity for students and growth for our economy through our Plan for Change.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
