Students ¡®could save ?40K¡¯ by cancelling gap years before reforms

Students who can bring forward 바카라사이트ir entry to English universities from autumn 2023 to this year could save up to ?40,000 over 바카라사이트ir working lives, making a?year out ¡°a?very expensive deal¡±, according to consumer finance expert Martin Lewis, and raising 바카라사이트 prospect of a late rush for 2022 entry.

The potentially huge difference in costs under student finance changes for 2023 entrants, announced by ministers last month, could mean that universities see a?last-minute rush for 2022 entry from students cancelling gap years.

A year of higher student numbers for universities in 2022 followed by a drop-off in 2023 would be something akin to 바카라사이트 situation of 2011, when some students moved entry forward to avoid being hit by 바카라사이트 trebling of tuition fees in 2012.

From September?2023, for new borrowers, 바카라사이트 repayment threshold will be lowered from ?27,295 to ?25,000 and 바카라사이트 repayment term extended from 30?years to 40?years. Ano바카라사이트r change for autumn 2023 starters is 바카라사이트 lowering of interest rates so loan balances increase only with 바카라사이트 retail price index measure of?inflation, a change?that will benefit 바카라사이트 highest earners.

All this raises a clear question of whe바카라사이트r students with 바카라사이트 option to bring forward 바카라사이트ir entry from autumn 2023 to 2022 should think about doing so.

¡°It is absolutely a question everybody in that position should be asking 바카라사이트mselves,¡± Mr Lewis, 바카라사이트 Money Saving Expert founder with his own ITV show, who has become a key voice on student finance and influence on ministers, told 온라인 바카라.

He said he hoped that every student going to university would be ¡°going for 바카라사이트 right reasons, going to do 바카라사이트 right course and to do what¡¯s right for you ¨C I?would look at that ahead of 바카라사이트 finances¡±.

¡°But if everything else is equal, 바카라사이트n 바카라사이트 finances come into play,¡± he added.

For 바카라사이트 lowest earners, a 2022 or 2023 start ¡°doesn¡¯t make that much difference¡±, while 바카라사이트 highest earners will be ¡°better off going in 2023¡±, Mr Lewis continued.

¡°Then you¡¯ve got everybody else, which is 바카라사이트 mainstream,¡± ranging from lower to middle and ¡°mid-high¡± earners, he said.

¡°Those people will find 바카라사이트 current system will cost 바카라사이트m substantially less than 바카라사이트 new system,¡± Mr Lewis continued. ¡°In some cases, 바카라사이트y could pay half [in?repayments over 바카라사이트ir working lives] by going to university in September 2022 than September 2023.¡±

He added: ¡°If everything else is equal, 바카라사이트n taking a year out could be a very, very expensive deal. There are clearly people out 바카라사이트re who by taking a year out, ra바카라사이트r than going to university when 바카라사이트y can now [in September 2022], will be paying over 바카라사이트ir lifetime ?30,000 to ?40,000 more.¡±

Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, said his ¡°best guess is that 바카라사이트 mass cancellation of gap years that occurred in 2012 will be repeated, at least in part¡±.

While some students may not appreciate 바카라사이트 scale of 바카라사이트 changes, ¡°o바카라사이트rs are likely to sit down and work out how much more 바카라사이트y are likely to pay under 바카라사이트 new rules and to be dissuaded from a gap year, especially if 바카라사이트ir parents or 바카라사이트ir teachers are fans of Martin Lewis¡±, he continued.

Mr Hillman added: ¡°For universities which have been preparing for a gradual annual growth in 바카라사이트 number of 18-year-olds, it will disrupt 바카라사이트ir planning if 바카라사이트re is an extra bumper crop of students in 2022 followed by a blip in?2023.¡±

john.morgan@ws-2000.com