Martin Lewis explains new student loan repayment program on Money Show

Financial expert Martin Lewis spoke about the biggest changes to student loans in England in 50 years on the latest episode of his ITV show.

Speaking on the Martin Lews Money Show, he said the new changes taking effect from 2023 will essentially be a lifetime tax on graduates.

You only repay if you earn above a threshold, but this goes from £27,295 to £25,000 for people starting university from 2023.

Anyone winning below the threshold will not refund.

England starters in 2022 will remain on the old threshold as no retrospective changes are made.

He explained that paying off a student loan is like a lifetime graduate tax because you pay based on what you earn, not what you borrow – it works like an additional 9% tax on the instead of a debt.

The current amount is cleared after being paid or after 30 years – whichever comes first, this will increase to 40 years for anyone at university from 2023.

According to Martin Lewis on the new system, more than half of people will repay their loan in full whereas currently it is just over 20%.

However, he stressed that he does not want anyone considering college to be turned away as long as the course is suitable for the candidate.

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