Martin Lewis issues urgent warning to every student in England
Martin Lewis is here with an 'urgent' warning to every student in England. And it's one you really shouldn't ignore.
Every week, the Money Saving Expert founder sends out his latest tips and tricks when it comes to saving cash; some of which are pretty easy to follow.
Just last week, money man Lewis explained your compensation rights if you've flown on a delayed fight in the last six years. And let's not forget about the cats or the air fryers.
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Well, like clockwork, Lewis is back again with his latest Money Saving Expert (MSE) newsletter sent to followers this morning (15 May).
Hidden some way among other tips Lewis and his team are urging you to follow is an 'urgent' warning to all students studying in England (don't worry for now, Scots).
Earlier this year he told students in the UK they should prepare to be worse off when it comes to student living loans in England; commonly called a maintenance loan.
While they are set to increase by 2.5% in September this year - something that seems to be an increase - it's 'yet another real-term cut'.
Despite the increase from the start of the new academic year, the MSE team says students are going to lose more than £1,000 in real money due to continuous inflationary worries.
Despite this cut, Lewis' new warning is here to make sure you get the money in the first place. Regardless of whether it's a cut or not, having nothing is obviously going to leave you in dire straits.
In the email, Lewis says: "English students starting this year need to apply by Friday (17 May) to be sure of getting their student loan funding for the start of term."
Fear not if you're already at university, as the deadline for students continuing their studies is 21 June, meaning the warning only really applies for those hoping to head to university for the first time this September or October.
Students applying for new starter loans will be taking out something called a 'Plan 5' loan, something Lewis says will increase costs by more than 50% for the typical graduate.
He explains: "You repay more on the same earnings than predecessors; £207 a year, every year, more if you earn over the old threshold. You repay for longer; the loan wipes after 40 years, not 30.
"The new system leaves many who start university straight after school still repaying it into their 60s. Many typical graduates will pay over 50% more than under the prior system and a few double.
"The only people who gain from the changes are the highest-earning university leavers (roughly the top 25%) who would've cleared their loans under the old system. This is because repaying more each year means you repay quicker, and there's less interest, thus less repaid in total."
Lewis stresses that 'this isn't a reason not to go to university if it's right for you', adding: "As daunting as this may feel, the fact university may be more expensive isn't a reason not to go if it's right for you. University isn't just about the finances. There are many other gains – which will be life-changing for some – and, on average, graduates do earn significantly more than non-graduates, so there is a balance.
"Yet the increase in likely cost for many is certainly a reason for you to understand how the finances work, and to examine whether university is the right choice. Could an apprenticeship or another option be better?"
Topics: Martin Lewis, Money, Students, Education, UK News
Tom Earnshaw