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This guide will help you to make an informed decision as to what to do when it comes to helping your child with paying for their education.
The UK government has announced a new student loan system, which will be introduced for students starting university in 2023. The new system, known as Plan 5, will have a number of changes from the current system.
One of the biggest changes is that students will now start repaying their loan when they earn over £25,000 per year. This is a significant increase from the current threshold of £27,295 per year.
Another change is that the interest rate charged on student loans will be linked to the Retail Prices Index (RPI). This means that the interest rate will rise and fall in line with inflation. This is likely to mean that the interest rate on student loans will be lower than it is currently.
Finally, the new system will also have a longer repayment period. Students will now have 40 years to repay their loan, instead of the current 30 years.