Repaying your student loan

What you need to know

When do I need to pay back the loan?

You only start to pay back when you are earning over £27,295 a year.

How much do I pay?

You repay 9% of your income above £27,295.

For example, if your salary was £30,000 per year, the 9% would only apply to £2,705 meaning you would repay roughly £20 per month.

How will I pay?

Loan repayments will be deducted from your salary, normally through the tax system.

What happens if my salary falls below £27,295?

Your repayments will stop if your salary falls below £27,295, for example if you take a career break or are unemployed.

Repayments only start again when you earn over £27,295.

What is the interest on the loan?

While you are studying, interest is 5.6%.

This is made up of the Retail Price Index (RPI) plus 3%. RPI is currently set at 2.6%.

This rate applies until the 5 April after you finish or leave your course, or for the first 4 years of your course if you’re studying part-time, unless the RPI changes.

After that, your interest rate depends on your income in the current tax year.

Your annual incomeInterest rate
£26,575 or lessRPI (currently 2.6%)
£26,576 to £47,835RPI (currently 2.6%), plus up to 3%
Over £47,835RPI (currently 2.6%), plus 3%

Interest on Plan 1

You currently pay interest of 1.1% on Plan 1. Find out how the interest is calculated and interest rates for previous years on the Government website.

How long do I have to keep paying?

If you have not repaid your loan after 30 years it is written off.

Need more information?

You can get further information on repayment and interest rates on the Government website.