Money-saving expert Martin Lewis has issued a warning to future students looking to start university this year.
Big changes will soon be introduced for student loans for all courses starting this September. It was revealed that students will have to begin paying back their loans once they start earning more than £25,000 - compared to previous students who only have to pay it back once they start earning more than £27,295.
According to the government, this means a graduate earning £28,000 would pay back £17 a month. Furthermore, interest rates will be cut for new students so their loan balance rises with the rate of inflation while the repayment period will be extended to 40 years.
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Appearing on the Martin Lewis Podcast, the money-saving expert warned: "There are seismic changes to English universities funding this September for new starters only - those already at University, this does not apply to you. And those changes will, for most people, substantially increase the amount that you pay your higher education.
"Not while you are at university but once you leave university and I think there will be many cases under this new system paying double what they would have paid under the existing system right now."
He goes on to explain that new university started will pay nine per cent of everything they earn over £25,000 and will begin paying more at every level they earn, similar to taxes. He also highlighted that, currently, you pay back the loan until it's either cleared or after 30 years.
However, from September, this will be extended to 40 years - whichever comes first. Martin added: "Now in practical terms, that means most new starters from 2023 will be repaying the loan for pretty much all of their working lives, until they hit retirement.
"And if you still got a high retirement and you've been a mature student you'd be paying in that if you're earning over the £25,000..." He continues: "The next and the one positive change here is currently the interest that is added to your loan account is inflation RPI - the higher rate - plus three per cent while you're a student..."
He added: "...under the new system there is just at inflation, which you can argue means there is no real cost to the funding of your education because if you borrow a shopping trolley's worth of goods of money, you would repay the same shopping trolley's worth of goods."
He also highlighted that there's a good chance that with the new rules, 52 per cent of graduates will clear their debt, instead of the current 23 per cent.
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