Martin Lewis: Student Loans Decoded

Martin Lewis: Student Loans Decoded is a groundbreaking, no-nonsense, authoritative guide to student finance and the real impact of higher education on both students’ and parents’ pockets.

Watch it in full or jump to one of the chapters below:

How much does it cost to go to university? 1:02

How much are parents expected to contribute? 8:32

How are student loans paid back? 19:38

How does the interest on student loans work? 29:39

Q&A with Martin Lewis - 44:22

Speaking to a lively group of 100 pupils at Queens Park Community School, Martin shatters popular myths and challenges the widespread misinformation that risks many young people not understanding – in practical terms – whether they can actually afford to go to university.

This easy-to-follow programme focuses on the current English system (introduced in 2012) and is intended for prospective university students in years 11 – 13 and their parents. Designed to be watched at home or in the classroom, it is a valuable resource for teachers and students.

[deebee]

He was spot on in many ways. One thing that was miles off though was the idea that wages go up nicely with inflation.

[rachelandy]

What an education. As a parent this lecture is so informative. This should be shown in all secondary schools. Thanks Martin x

[elipong]

Martin you are a flipping genius this is soooo insightful!!

[MeMyselfandMyPie]

Even as a graduate, this has been very informative. Shame it's taken me watching this in 2019 after graduating in 2015 to realise this fml. Wish its all wiped off!

[angiejones]

Martin, thank you, this is an excellent guide. I have two sons, one is a graduate and my younger son recently started at uni, and I found your explanation incredibly useful. I'm sure that other parents will benefit hugely from viewing it and I encourage all schools to add this video to their year 12 curriculum.

[somedude]

This is such a fantastic talk - demystifying and debunking so many myths

[artwithtricia]

Fantastic, I felt I know about students loan, being a keen MoneySaving follower. But as a parent of a year 11 student this has really got me thinking and planning! Thanks

[raymondnes]

Superb video and very nicely explained. Thank you Martin!

[kuldeepkuner]

been following this guy for 20 odd years, like always he is fantastic :)

[Neruqi]

If we don’t see this man in the next 5 years we will know why 👀

[gav]

Excellent Video. Thank you very much Martin! You are a great speaker

[dwyt]

Thank you so much for this! this is great.

[beltingtokra]

"The government is omnicompetent"

Not sure about that...

Seriously, such a useful talk.

As someone who went to Uni in 2011, I never understand why some parents paid their child's fees up front, makes zero sense.

I started working full time a few years after graduation and only then did i start to pay off my loan, but you barely notice it. Feels good to be paying it though, although it will never be paid off 😅

I also wish the plan 2 system had been explained like this when it was being brought in. Ultimately, the amount you owe doesn't matter, unless you are someone who earns enough to pay it all off. The fear surrounding the fees trebling whilst totally understandable, made application in my year much more stressful. But Politics 🤦

Good luck to everyone applying to university and those studying and also going into the world of work right now 😊

[OllyNewport]

I dropped out of university and have a £17, 500 student loan that's earning the SLC a hefty 6.3% interest (£100 interest added per month). I earn about £50k a year before tax as a freelancer, meaning I pay £2, 200 towards the loan each year in my self-assessment tax payment. The size of the loan increases by £1200-1300 each year.


Should I repay the loan early? If I leave it alone, it'll continue to earn a massive chunk of compounding interest into the future, where it'll eventually be paid off before it gets written off, but having cost far more than if I got it out the way now.

[kirandobson]

Brilliant video, super helpful thanks.

To make it even better you could add the graphs you talked about on a screen behind

[jeremyr]

Its annoying when your earning over £40k-£50k after dropping out after 2 years. Turning a £19k debt into £24k once leaving, which will clear after 16 years costing £32k for something you never used is quite shit! Wish it would just be wiped. I wouldnt mind if i used my education to get the job im in now but its got nothing to do with uni education :( seeing £200+ leave your pay each month is ANNOYING!!!! Especially at interest rate of 6.1%!!! When mortgages are 1.9%!!! The interest rate is a absolute joke. It should be interest free or max 1.5% like the pre 2012 lot! #Robbery!

[Brickinasock]

Please tell Martin that I shared it on Facebook and already I have had one person thank me because they planned to pay their debt off directly. Thank you. I hope there will be many more.

[lornalancaster]

Brilliant, Martin. What a pity so many people responding to misleading articles about the 12% clearly have not watched this video and are unaware of the true facts. The only question that remains for me is whether one should apply for any loan if one has a well paid placement for the 3rd year close enough to enable one to live at home but still has to pay something to the university (God knows why). My instinct is not to, assuming one can still get the loan for the final year

[LFLvideos]

I appreciate Martin Lewis and what he does for the country to provide financial literacy, HOWEVER; if you think you'll never pay the debt off because you won't earn enough then don't go to University. To keep up with the rising cost of living and if you potentially want a mortgage one day, you will earn over the threshold and you will be using your 'education' as a return on investment in hoping that the financial cost is worth a higher salary in the long run. Unless specialising in hoping to aim for a career which is absolutely vital to have a degree e.g. health care to become a health care professional, engineering degree... you are simply funding the business of education. When you join the real world you will realise people will pay you for your competency, who you know and work experience so far. Many many people with degrees devalue the degree, despite the huge debt. Consider apprenticeships or work directly. Otherwise, want to learn deeply a subject? Try an online course that costs a few £100 rather than 10s of thousands.
Your welcome

[iguiste]

You're spot on. I was in care my entire life until 21 so they coveted mostly everything. I went to Cambridge college at 18 after practically walking my GCSEs. I between then and now at nearly 34 years old have studied Astronomy, Genetic Biology, Geography and nearly perfected Ecology. I am currently about to apply to go back to college yes at 34 years old to Study Astrophysics and Rocket science as I want to pass to be able to apply for NASA one day in the future. Great presentation and very accurate. Though it was much different when I was younger before 2012.