Student loan repayment examples on several English university websites have come under scrutiny after an analysis found that some institutions only show figures based on earnings below the national average. The findings have prompted Dame Meg Hillier, who chairs the Treasury Committee, to describe some of the material as misleading and to call for the Department for Education to include higher-salary illustrations on its own site.
The review of more than 110 university websites also uncovered inaccurate details about repayment thresholds and loan terms. The issue matters because graduates on Plan 5 loans repay 9% of any income above £25,000 for up to 40 years, meaning monthly costs rise in step with earnings.
How the repayment system works
Students in England take out Plan 5 loans to cover tuition fees and living costs. Repayments are income-contingent: someone earning £30,000 pays £37.50 a month, while someone earning £100,000 pays £562.50. The UK average salary is £39,039, yet a dozen universities offered worked examples only at salaries below that level.
Among them, the University of Gloucestershire used a £26,000 salary to show a £7.47 monthly repayment. Northumbria University and the University of Huddersfield both gave examples based on £35,000, resulting in £75 a month. Northumbria had described that sum as less than the cost of a daily coffee, a comparison it has since removed after being approached.
Other institutions listed in the analysis included the University of Birmingham and London South Bank University, each showing £22 and £22.50 a month respectively; Manchester Metropolitan University at £33; Birmingham City University, the Open University, the University of Sheffield and the University of Wolverhampton at £37.50; the University of Portsmouth at £45; and Birkbeck, University of London at £54.
Inaccurate details found
Beyond the choice of salary examples, the analysis identified factual errors. The University of Exeter stated that Plan 5 loans were written off a decade earlier than they actually are. Royal Holloway and Edge Hill listed incorrect repayment thresholds, while Harper Adams said students from England remained on Plan 2 loans. All four institutions have updated their websites since being contacted.
Dame Meg, who led a recent inquiry into student loans, said she was shocked by the findings and would raise the matter with MPs, urging them to write to universities in their constituencies. She argued that the Department for Education should take the lead by reflecting higher earners’ repayments, while universities also have a duty to the young people they recruit.
The Department for Education said it would review the information it provides, following the Treasury Committee’s recommendations, and was working with universities to ensure clarity and accuracy. It added that its guidance explains how repayments are calculated across different plans.
A graduate’s perspective
Megan Russon, 21, a tax accountant from Cannock, graduated from the University of Birmingham with about £62,000 of debt. She currently earns around £29,000 and repays roughly £30 a month. Once she becomes chartered in three years, she expects her salary to reach about £50,000, pushing her monthly repayment to around £187.
Russon recalled that university open days presented repayment examples based on salaries between £25,000 and £45,000, with the suggestion that graduates would barely notice the cost. She said she only later realised how significantly the repayments would affect her.
Lewis Wilson of the National Union of Students described the findings as shocking, saying students should be able to rely on information from their universities and that, for any other financial product, such practices would cross the line into mis-selling.
University responses
The University of Gloucestershire, the University of Birmingham and Harper Adams University said they had updated their websites, while Birkbeck said it was reviewing its information. The University of Sheffield described its example as illustrative. Manchester Metropolitan University and the University of Wolverhampton said their examples were explanatory and would be reviewed. London South Bank University said it regularly reviews content for helpfulness and accuracy.
The Open University said it used income levels most likely to reflect its students’ circumstances, though many go on to earn significantly more. The University of Portsmouth said its example came from Student Finance England and would be updated to reflect the most recent average salary. Northumbria University said its £35,000 figure was broadly in line with the average for full-time workers in the North East of England but acknowledged that higher earners make higher repayments and would review its pages for clarity. Birmingham City University declined to comment, and the University of Huddersfield has been asked for a response.
