When you finish your course you need to pay back any loans you’ve borrowed – but not until your income is over £21,000 a year.
If you’re a full-time student you’ll be due to start repaying your loan the April after you finish or leave your course. If you’re studying part-time, you’ll be due to start repaying the April four years after the start of your course or the April after you finish or leave your course, whichever comes first.
How much?
The amount you repay each month is linked to your income, not what you borrowed.
You’ll repay 9% of any income you earn over the current threshold of £404 a week, £1,750 a month or £21,000 a year. If your income falls below this, your repayments automatically stop.
The example below shows what you might repay each month depending on your income.
How do I repay my loan?
Your employer will automatically take 9% of your income above the threshold through the UK tax system (Pay As You Earn – PAYE).
If you’re self employed you’ll pay through self assessment.
If you live or work abroad when you finish you course you need to contact us before you leave the UK so we can make arrangements for you to start repaying.
Do I have to pay interest?
Yes. Interest is charged on your loan from the day we make the first payment until the loan is repaid. Any loan remaining after 30 years will be written off.
The amount of interest charged will vary, depending on your circumstances.
| While you're studying up until the April after you finish or leave your course | Retail Price Index (RPI) PLUS 3% |
| From the April after you finish your course | Interest will be based on your income:
£21,000 or less = RPI Between £21,000 and £41,000 = RPI plus up to 3%, depending on your income £41,000 and over = RPI plus 3% |
Find out more about repaying your student loan in our Repayment Quick Start Guides.
Repaying your Postgraduate Loan
For information on repaying a Postgraduate Loan, go to the new dedicated Postgraduate Loan section for more information.
