Martin Lewis: Five things EVERYONE should know about English student finance 2024/25

MSE_Sally

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's 'Five things EVERYONE should know about English student finance 2024/25' Blog.

Please click 'post reply' to discuss below.

maxine1708

I wonder if anyone else has experienced this. Both my son and daughter have plan 2 student finance. They have earned over the threshold in 22/23 but have been charged more than 9%. My son actually paid 13% in 22/23 and SFE refuse to refund the difference which is actually £1600 over the past 4 years. My daughter is owed a similar amount in 23/24 which is yet to be tackled as she was not working for 6 months with film writers strike. They just write back … you have earned over the threshold so you have to pay despite the charges being way over 9%. Any advice? I object to them overpaying it! 

Nearlythere23

You really should be campaigning against Student Loans - is unfair that a graduate on a relatively low salary (e.g. nurses, paramedics, teachers many others) pay extra tax to educate the people that the country cannot live without (e.g. nurses, paramedics, teachers, lawyers, accountants, engineers, scientists.....) when someone earning twice as much uses the services of graduates but doesn't contribute to funding their education.   Tax to pay for student fees (ie the education) should be paid for by all - the only thing that should be treated as a loan or additional tax is the maintenance element that is paid directly to the student.

Nearlythere23

Why have you not given any heads up on the Lifelong Learning Entitlement which is due to replace Student Loans in 2025 for English students.  The amount that can be borrowed is significantly different, especially for those who have already done some sort of Higher Education even if they haven't completed a qualification.   

Knowing the difference may be a reason for students to start their studies this year, or indeed to delay to next year depending on which regime would suit them best.

silvercar

maxine1708 said:

I wonder if anyone else has experienced this. Both my son and daughter have plan 2 student finance. They have earned over the threshold in 22/23 but have been charged more than 9%. My son actually paid 13% in 22/23 and SFE refuse to refund the difference which is actually £1600 over the past 4 years. My daughter is owed a similar amount in 23/24 which is yet to be tackled as she was not working for 6 months with film writers strike. They just write back … you have earned over the threshold so you have to pay despite the charges being way over 9%. Any advice? I object to them overpaying it! 

This would probably have been better on the student board that can be found here: https://forums.moneysavingexpert.com/categories/student-money-saving

There are some similar threads over there, that may be worth a read.

Basically the rules are that if you have made loan repayments, but your income for the financial year is less than the threshold, you can request a refund of your loan repayments. However, if your income for the year is greater than the threshold, you can’t get a refund of any repayments. So if your income fluctuates during the year, such that in some months you earn over the monthly threshold, but other months you are below it, but taking the financial year as a whole you are over the threshold, you can’t get a refund of repayments. So anyone with a bonus or changing income could find themselves over the threshold for the year, under the monthly threshold for some months and over it for others, yet they aren’t entitled to any refund. In this situation they could well end up having paid more than the 9% over the threshold.

shoi

How does it work for expats?  Ours has the right to pay UK fees and to receive a Student Loan (part of the brexit agreement), and I see that if they then move away they are still obliged to repay with some adjustment to the amount depending on the cost of living where they now are (but not payroll deducted)

Is there anything else to note?