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Top of the class on student fees

The Sunday Mirror

|

April 20, 2025

Revise your approach to borrowing money for uni

- WARREN SHUTE

Top of the class on student fees

Let's talk about how to handle student loans...

The government overhauled the student loan system in 2023 with the introduction of Plan 5, and this remains the repayment plan for undergraduate students starting university in England from August 2023 onwards, so it will apply to all new starters in the 2025/26 academic year.

The Key Features of Plan 5 (for 2025/26)

Repayment threshold: Students will begin repaying their loan once they earn over £25,000 a year. This threshold has been frozen until April 2027, and from then on is expected to rise with inflation.

Interest Rate: Interest is charged at the Retail Prices Index (RPI) only. There is no additional interest based on income, making the system simpler and typically less expensive over time than older plans like Plan 2.

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