An investigation has uncovered that multiple universities across England have been providing potentially misleading information regarding student loan repayments on their websites. The study, which reviewed publicly available data from over 110 university websites, found that several institutions relied exclusively on below-average salary figures to illustrate repayment costs.
In some instances, these examples inaccurately represented the salary threshold for starting repayments or the total duration of the loan term.
Dame Meg Hillier, chair of the Treasury Committee who recently led an inquiry into student loans, described some of the information provided by universities as "misleading." She specifically highlighted one instance where student loan repayments were compared to the "cost of a daily coffee," a comparison that was removed from the Northumbria University website after the issue was raised.
Dame Meg emphasized that the Department for Education (DfE) also has a responsibility to provide more comprehensive, higher-salary examples on its own official website.
Under the current Plan 5 loan system, students in England are required to repay 9% of their earnings above a £25,000 threshold for a period of 40 years, or until the debt is cleared. Because repayments are directly tied to income, higher earnings result in larger monthly deductions.
Despite this, 12 universities provided worked examples based on earnings lower than the UK average salary of £39,039.
For example, the University of Gloucestershire cited a £26,000 salary leading to a repayment of £7.47 per month, while the University of Huddersfield and Northumbria University utilized a £35,000 salary to suggest a £75 monthly repayment.
The DfE website currently provides information on other loan plans but lacks real-world repayment examples for Plan 5 students, only offering figures for those earning up to £38,400. This absence of high-end modeling can obscure the long-term financial impact for graduates who go on to earn significant salaries.
For instance, while a graduate earning £30,000 would pay £37.50 per month, someone earning £100,000 would be required to repay £562.50 monthly.
Megan Russon, a 21-year-old tax accountant, shared her experience as a recent graduate from the University of Birmingham. She noted that while she currently pays about £30 a month on a £29,000 salary, she expects her monthly repayments to rise to approximately £187 as her salary increases to £50,000 over the next three years.
She recalled that during open days, universities often presented repayment figures based on earnings between £25,000 and £45,000, suggesting that the cost would be "minimal" and something graduates "wouldn't even notice."
In response to the findings, the DfE stated it would review the information it provides to students. Similarly, universities noted that their websites often refer to official government data and indicated they would review their content where necessary.
