Finance expert Martin Lewis has spoken about the biggest changes to student loans in England in 50 years on the latest episode of his ITV show.
Speaking on the Martin Lewis Money Show, he said the new changes coming into force from 2023 will essentially be a lifelong graduate tax.
You only repay if you earn over a threshold however this is dropping from £27,295 to £25,000 for people starting uni from 2023.
Anyone earning under the threshold will not repay.
Starters in England in 2022 will stay on the old threshold as no retrospective changes are being made.
He explained repaying a student loan is like a lifelong graduate tax as you pay based on what you earn, not what you borrow - it works as a 9% additional tax instead of a debt.
The current amount is wiped after being paid off or after 30 years - whichever comes first, this will increase to 40 years for anyone at uni from 2023 onwards.
According to Martin Lewis, on the new system more than half of people will pay back their full loan whereas currently, it's just above 20 per cent.
However, he stressed that he does not want anyone considering university to be put off as long as the course is right for the applicant.
