The Money Saving Expert has this message for parents concerned about their finances ...

As A-Level results approach and the scramble for accepting those university places begins, it's worth remembering what Martin Lewis warned families earlier this year – especially if your child has been toying with the idea of taking a gap year, rather than going straight to uni in September!

'It could be a VERY expensive GAP year', he told parents on ITV's The Martin Lewis Money Show Live back in March – and the warning still applies.

Why?

Because earlier this year, the government announced huge changes to student loans that could see young people paying back 100k of borrowed money over a 40-year period.

Until now, students have been able to borrow money to cover tuition fees and living expenses while they study. This can be up to £12,667 per academic year and only gets paid back once they're earning over £27,200 per year.

However, from September 2023, the repayment threshold will be lowered to £25,000 a year and the length of time over which graduates repay their loans will be increased from 30 years to 40 years.

It will drastically increase costs for attending university.

Martin, who presents the show and also runs the Money Saving Expert website, said:

'The plans will see most university leavers pay far more for their degrees over their lifetime than they do now. It effectively completes the transformation of student ‘loans’ for most into a working-life-long graduate tax. Most who start university straight after school will still repay it into their sixties.'

As this only comes into effect for students starting university in the 2023/24 academic year, it means anyone thinking of deferring university could face a much more costly university experience.

He's therefore recommending parents not to let kids take a GAP year, if you're already concerned about how much uni will cost.

He says:

'To anyone who finishes school this year and plans on taking a gap year to start in 2023, it's worth having a think. For most, starting this year will save you thousands of pounds over your working life compared to delaying.'

A-Level results come out tomorrow, 18 August. Make sure you've seen our guide to Clearing, here.

You can also chat to other parents about university in our Forum.

If you're looking for more ways to save cash this year, here are Martin Lewis's top money saving tips for families in 2022.

Or, if you want an extra source of income, here are 28 genius ways to make more money.

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