Now the A-Level results are out, hundreds of thousands of young people will now be planning to go on to higher education. But it won't come cheap.
The majority of degrees are funded by Government-backed student loans. with around £20billion loaned to around 1.5 million students every year, reports the Mirror. The loans, plus interest, do not need to be repaid until graduates start working.
However, the way loan repayments works is not straightforward., and how much you repay mostly depends on when you went to university and how much you earn. There is also a major change happening with the loans next year, as you will start to repay them with 9% interest if you earn £25,000 and above.
The cap on interest rates for student loans in England and Wales is being cut to 6.3% from September. It was due to rise to 7.3% after the Institute for Fiscal Studies (IFS) warned students could end up paying up to 12% interest.
The repayment threshold is currently £27,285 - this applies to students starting universal this September.
We have made a calculator to help work out how much you might end up repaying for your student loan...
