This Morning: Martin Lewis revealed details about tuition fees, student loans and pay backs [ITV]
Money expert Martin Lewis regularly appears live on This Morning to deliver amazing tips and important information.
From holiday deals to loan payback advice, Martin shares his view and wisdom on different topics.
On Monday, Martin gave his advice on student loans and finance.
Martin answered regular queries he is faced with, before sharing his own outrage over aspects of paying back loans.
This Morning: Martin Lewis appeared on This Morning with Ruth Langsford and Eamonn Holmes [ITV]
This Morning: Martin Lewis appeared on This Morning with Ruth Langsford and Eamonn Holmes to discuss student loans [ITV]
He explained: “You do not pay a tuition fee as long as you’re a first time UK undergraduate.
“You get a student loan from the Student Loans Company and it pays the university for you, it never comes to you.
“You will then pay that back when you leave university, but only if you earn over £21,000.”
So what happens if a graduate didn’t get a job which paid £21,000 or above? Martin revealed: “What I often get is, ‘What if my child doesn’t get a decent job and can’t pay anything?’ then you won’t pay anything.”
This Morning: Martin Lewis has shared advice on student loans and interest [ITV]
Martin also confirmed that the student loan being paid back “wipes after 30 years”, so anyone who doesn’t earn £21,000 in that time will not pay back the money.
So how much interest are students required to pay yearly? Hoping the payback amount would be updated with consideration of average earnings, Martin added: “You pay 9% of everything you earn above £21,000, so £22,000 is £1000 above which will make it £90 a year.”
Martin explained that the payback comes out of your payroll, and continued: “You don’t get the money and pay it, it’s paid before you get it so there’s be no debt collectors on this one.”
Martin also hit out at the Student Finance Company as a name, calling it “misleading”, “dangerous” and “wrong”.