By Salma El-Sakka
Several universities in England have been using below-average salaries in student loan repayment examples on their websites, a BBC investigation has found. Treasury Committee chair Dame Meg Hillier called the information "misleading" and urged the Department for Education to include higher-salary examples.
Plan 5 Repayment Terms
Current and prospective students in England take out Plan 5 loans for tuition fees and living costs. They repay 9% of earnings over £25,000 for 40 years or until the loan is paid off. The more a graduate earns, the higher the monthly repayment.
Below-Average Salary Examples
The BBC analysed publicly available information on more than 110 university websites and found 12 institutions only gave worked examples based on earnings below the UK average of £39,039. The University of Gloucestershire used a £26,000 salary (£7.47 per month), while Northumbria University and the University of Huddersfield used £35,000 (£75 per month). Northumbria's website compared the repayment to "the cost of a daily coffee" – a comparison removed after the BBC contacted them.
The Department for Education website also only provides examples up to £38,400 for other loan plans, with no real-world examples for Plan 5. At £30,000 earnings, the repayment is £37.50 per month; at £100,000, it is £562.50 per month.
Graduate Perspective
Megan Russon, 21, a tax accountant from Cannock with a starting salary of around £29,000, will repay about £30 per month. She expects to earn £50,000 when chartered in three years, raising her repayment to about £187 per month. Russon said universities at open days gave examples based on earnings between £25,000 and £45,000, suggesting repayments would be minimal.
Inaccuracies and Updates
The BBC also found instances of inaccurate information. The University of Exeter said Plan 5 loans were written off a decade earlier than they actually are; Royal Holloway and Edge Hill listed wrong repayment thresholds; Harper Adams said English students were still on Plan 2 loans. All four universities have updated their websites since being contacted.
Calls for Change
Dame Meg Hillier said she was "pretty shocked" and will raise the issue with MPs, urging them to press universities in their constituencies. She said the Department for Education should lead by reflecting repayments for higher earners, and that universities have a responsibility to students. Her earlier inquiry found the DfE had been "mis-selling" Plan 2 loans, criticising comparisons to £30-a-month phone contracts.
The Department for Education said it would review the information it provides and work with universities to ensure clarity. Several universities, including the University of Gloucestershire, the University of Birmingham, and Harper Adams University, confirmed they had updated their websites, while others said they were reviewing content.
