MILLIONS of scholars are being hit with rising interest rates on their own loans, contributing to the total amount they'll need to repay to pay off the debt.
Student loan rates of interest are going to rise by almost 3 percentage points from September, the federal government has announced.
Rates are going to rise from 4.5% to 7.3% meaning it might take years longer to settle the loans.
But there was fears the new rate could be even higher.
Because the interest rate is associated with inflation, it absolutely was likely to leap to an eye-watering 12%.
But the Department for Education brought forward its announcement and said it was protecting graduates from soaring inflation.
The recently announced change will affect current students in Britain, in addition to former students with outstanding loans who started university in or after 2012.
Who is going to be affected?
The change will not affect borrowers' monthly repayments because this is tied to how much you earn, not the eye around the loan.
If you are not generating revenue, or earning under the threshold for the loan, you don't have to pay anything back.
We've previously checked out when you start repaying your student loan and just what the interest rate is.
Because more interest rates are accruing around the loan, it might mean it takes longer to pay off the debt and that the total amount you wind up repaying overall is larger.
However, student education loans are wiped 30 years once you leave university and lots of people will not finish repaying the debt before that time.
Writing on MoneySavingExpert, Martin Lewis said a larger problem for students is frozen repayment threshold, which contributes to loan costs, and maintenance loan rises to pay for cost of living.
When will i start repaying my education loan?
You're eligible to start repaying your education loan in the April Once you leave university.
Every year, thousands of people mistakenly start repaying their debt before then though.
The amount you pay each month is determined by your wages as well as which plan you're on.
English and Welsh students who started an undergraduate course before September 1, 2012 and Scottish or Northern Irish students take presctiption Plan 1.
England and Welsh students who started an undergraduate course after September 1, 2012 take presctiption Plan 2.
Plan 1 students start repaying 9% of the income when they earn over lb19,895 – and lb27,295 for Plan 2.
When the loan is wiped off also varies. For those who started advanced schooling after 2012, it's 30 years from the first April once you graduated.