Several universities in England have been presenting incomplete or misleading information about student loan repayments on their websites, a BBC investigation has found. The analysis of over 110 university websites revealed that some institutions only provided examples of repayments based on salaries below the national average, potentially giving students a skewed picture of their future financial obligations.
Concerns Raised by Treasury Committee Chair
Dame Meg Hillier, chair of the Treasury Committee, who recently led an inquiry into student loans, described some of the information as "misleading." She highlighted one instance where repayments were compared to the "cost of a daily coffee," a comparison that trivializes the long-term financial commitment. Dame Meg also called on the Department for Education (DfE) to include higher-salary examples on its own website, stating that the department should be "taking the lead" in providing accurate information.
The DfE has said it will review the information it provides, while universities have pointed to government sources and pledged to review their content where necessary.
How Student Loans Work
Current and prospective students in England take out Plan 5 loans to cover tuition fees and living costs. Under these terms, graduates repay 9% of any income above £25,000 for up to 40 years, or until the loan is cleared. This means that higher earners repay more each month, but many university websites fail to illustrate this progression.
The BBC's investigation found that 12 universities only gave worked examples of repayments based on earnings below the UK average salary of £39,039. For instance, the University of Gloucestershire showed a £26,000 salary leading to a £7.47 monthly repayment, while Northumbria University and the University of Huddersfield used a £35,000 salary to illustrate a £75 monthly repayment. Northumbria's website even described this as "repaying an amount less than the cost of a daily coffee," a comparison that has since been removed after the BBC contacted the university.
In contrast, the DfE website only provides examples of monthly repayments for people earning up to £38,400 on other loan plans, with no real-world examples for Plan 5 students. Repayments are 9% of earnings over £25,000, so someone earning £30,000 repays £37.50 per month, while someone earning £100,000 repays £562.50 per month.
Student Voices
Megan Russon, 21, a recent graduate from the University of Birmingham with a degree in accounting and finance, owes about £62,000. She currently earns around £29,000 as a tax accountant, meaning she repays approximately £30 per month. However, she expects her salary to rise to around £50,000 when she becomes chartered in three years, at which point her monthly repayment will jump to about £187.
Megan recalls that at university open days, examples of repayments were based on salaries between £25,000 and £45,000, and graduates were told they "wouldn't even notice the repayments because they should be minimal." She said: "At the time, I wasn't sure what salary I was even going to be on when I graduated. When I was at university, I started realising the salaries that I was going to be on after I graduated, then I started realising actually this is going to be impacting me quite a lot."
Inaccuracies and Responses
The BBC also uncovered instances of inaccurate information. 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; and Harper Adams said students from England were still on Plan 2 loans. All four universities have updated their websites since being contacted.
Dame Meg expressed shock at the findings and said she would raise the issue with MPs, urging them to write to universities in their constituencies to ensure better practice. She emphasized that universities have a responsibility to the young people they admit for three or four years of study.
Her inquiry this year concluded that the DfE had been "mis-selling" Plan 2 loans, which were issued in England between 2012 and 2023 and are still available in Wales. The report criticized the department for not making clear how higher earnings would affect monthly repayments and for comparing loans to £30-a-month phone contracts. The DfE subsequently pledged to improve the information provided to prospective borrowers, including the impact of salary progression.
A DfE spokesperson said its guidance sets out how repayments are calculated across different plans and stressed the importance of clear and accurate information for applicants. "We have committed to reviewing the information we provide following the Treasury Committee's recommendations, and we will. We are also working with universities to ensure the information they provide to students is clear and up to date," the spokesperson added.
In response to the BBC's findings, the University of Gloucestershire, the University of Birmingham, and Harper Adams University said they had updated their websites. Birkbeck, University of London, said it was reviewing its information. The University of Sheffield described its example as illustrative, while 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 accuracy.
The Open University said it provides examples of "income levels that are most likely to reflect our students' circumstances," though many students "go on to earn significantly more." The University of Portsmouth said its example was taken from Student Finance England and would be updated to reflect the most recent average salary. Northumbria University said its £35,000 example 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 all pages for clarity. Birmingham City University declined to comment, and the BBC has requested a comment from the University of Huddersfield.
