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 £25,000 a year.

How much do I pay?

You repay 9% of your income above £25,000.

For example, if your salary was £27,000, the 9% would only apply to £2,000, meaning you would repay £15 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 £25,000?

Your repayments will stop if your salary falls below £25,000, for example if you take a career break or are unemployed.

Repayments only start again when you earn over £25,000.

What is the interest on the loan?

While you are studying:

  • interest on your loan will be applied at inflation (RPI – Retail Price Index) plus 3% while you are studying, and up until the April after you leave university or college.

When you graduate and earn:

  • below £25,000 – interest will be applied at the rate of inflation from the April after you leave university or college if you are earning.
  • between £25,000 and £41,000 – interest will be applied between RPI and RPI + 3% on a gradual scale depending on income.
  • above £41,000 – interest will be applied at RPI + 3%.

How long do I have to keep paying?

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

Need more information?

Visit for more information about the financial support available to university students including support for part-time study.