David Gilani

The future of your Student Loans

When the government raised the cap on tuition fees, they also made various changes to how all future students will pay back their loans – however, this new system is having teething problems already. 

Here are some key things to consider about student loans and their repayments:

  • Student Loans in this context only refer to UK undergraduate students. 
  • With the rise in tuition fees – most students who have started in 2012/13 or afterwards will have to pay back roughly £40,000 in fees.
  • For these cohorts of students, they will only start paying back their loans once earning  more than £21,000
  • You also only pay back a percentage of your income above this base rate, which is currently set at 9%.
  • You only have to repay these loans for 30 years after graduating.
  • Not all graduates will pay back this £40,000 across these 30 years.


Because of this inability for all students to pay back their loans, the current system is losing the government money – which makes ‘the student loan book’ (the term for the collective student loan debts of all UK undergraduate students), an unattractive thing for the government.

This has led to discussions in Parliament of the government selling the debts of students to private companies, which could be a dangerous thing for our current students and more directly, past students.

At the moment, although there is no law protecting the repayment details of the student loan debts, any changes would at least have to be seen in Parliament… however, if the loan book were sold to private companies, then there would not necessarily be any protection on these details.

A petition has been started to draw attention to this issue, which you can learn more about and sign here – http://epetitions.direct.gov.uk/petitions/52145

It’s important to note that the selling of the Student Loan Book isn’t definitely happening – but it’s important to stay educated about these issues.

Thanks for reading

David Gilani – Union President

UPDATE – – – The petition has now reached 10,000 signatures, meaning that the government will have to write a response on this issue. It shall be posted to the epeitions site: http://epetitions.direct.gov.uk/petitions/52145

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3 Comments on "The future of your Student Loans"


  1. […] to wait for the loans to be repaid. The irony of this thought process will not be lost on…

  2. […] can read my original blog on the subject to find out more about the system and what the changes…

  3. […] – There was a scare over the summer that the government would sell off the Student-Loan Book (read more…

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