Money Saving Expert Warns Government Not to Increase Graduate Debt Burden

Students were up in arms after reading the Financial Times scoop that the UK government is considering lowering the salary level at which graduates must start repaying their loans.

Currently, student loan repayments start when you make more than £ 27,225 per year, but the FT has reported that this could drop to around £ 23,000 in the future. The changes are expected to apply retrospectively to those who started their college courses after 2012, including this week’s podcast guest Ola, a 24-year-old graduate, who fears how much the changes could cost her.

“If this is hindsight, then for me it is a violation of natural justice and it is certainly something I would be yelling at,” Martin Lewis tells Claer. “Should students be afraid? Yes.”

In addition to exploring the possible impact on youth budgets, we heard from FT reporter Bethan Staton on the political motivation for any changes to the loan system.

Other readings:

Vote for the Money Clinic in the Lovie Awards here (deadline Thursday, October 21)

Check out Claer’s free FT column on how student loan changes could work for you

Watch Martin’s YouTube video on why he opposes the system changes

Here’s FT’s original news story on the expected changes

Follow Ola on Instagram @AllThingsMoney

Follow Claer on Instagram and Twitter @ClaerB and DM him if you’d like to appear as a future guest, or email the team at [email protected]

Presented by Claer Barrett. Produced and edited by Persis Love. Sound design by Breen Turner.

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