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 income||Interest rate|
|£26,575 or less||RPI (currently 2.6%)|
|£26,576 to £47,835||RPI (currently 2.6%), plus up to 3%|
|Over £47,835||RPI (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.