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 direct.gov.uk/studentfinance for more information about the financial support available to university students including support for part-time study.

Financial skills programme

Download the 2018/19 programme.