Martin Lewis issues £9,250 student loan warning which people say is 'ridiculous'

Martin Lewis has spoken out over student loans - after asking whether universities should increase fees beynd £9,250 in line with inflation. The BBC and ITV star spoke out on social media with his daily social networking platform poll of the day.

Mr Lewis said: "The problem with student loan interest (now set at the rate of inflation for new starters). Practical Finance Impact: Primarily on higher earning grads as they're the ones who'll paying it all (as you must clear in full before it wipes to pay it all).

"Psychological Impact: Those from non-traditional uni backgrounds are most put off by it, even though they'll only pay it all if they end up being a higher earner. The whole way we communicate student finance is cocked up and misleads and scares people (its in effect far more like a limited term graduate tax, that doesn't make it cheap, just not a debt),"

READ MORE Martin Lewis issues update on Ofgem rule change which could cut bills by £100

He was replying to a Twitter/X user who said: "The bigger issue is how interest is charged on the debt. Allow fees to rise, but make the debt track a double-lock of inflation or interest rates, whichever is lowest." Mr Lewis had asked: "Today's Twitter Poll: Would you support or oppose Universities being allowed to increase Tuition Fees with inflation?

"The tuition fee cap was set at £9,000 in 2012 and rose to £9,250 in 2017 it has been frozen since meaning substantial real term cuts to universities income from home undergrad students, which has left some struggling. Which is closest to your view?"

Another said: "Ridiculous that it is so high to begin with. Where does the money go? My final year at uni, I had maybe 3 lectures a week!" A second said: "Hi Martin. Good Poll however can you please address your next one to how the cuts that 47% of people want are funded,please. Lots of people want to increase spending on many things & keep the WFA as a universal benefit.

"What I don't often see is many alternative ways to fund them."