Facts about repaying your Postgraduate Loan

Repayments are based on your income, not what you borrowed. If your income changes, either rising or falling, your repayment amounts will change to reflect this. If you stop working, your repayments will stop until you start working again and your income is over the repayment threshold of £21,000 a year, £1,750 a month or £404 a week.

Interest is charged at the Retail Price Index (RPI) plus 3% from the day we make your first payment to you until your Postgraduate Loan is repaid in full or written off.

You can make a voluntary repayment towards your Postgraduate Loan at any time.

If you're leaving the UK for more than three months you??ll need to complete an Overseas Income Assessment Form so we can calculate if you need to repay. We??ll send you a repayment schedule showing how much you need to repay each month.

How are repayments taken?

No repayments will be taken towards your Postgraduate Loan before April 2019 and only then when your income is over the current threshold of £21,000 a year.

If you??re employed, your will employer take repayments directly from your salary. Your employer tells HM Revenue & Customs (HMRC) how much student loan you??ve repaid. After the end of the tax year, HMRC tells us how much you??ve repaid that year. We apply the repayments to your balance and work out the interest to be added. We??ll then send you a statement.

If you??re self-assessed you will repay to HMRC directly through your Self Assessment tax return. After the end of the tax year, HMRC tells us how much you??ve paid that year. We apply the repayments to your balance and work out the interest to be added. We??ll then send you a statement.

Remember, we only receive your repayments from HMRC once a year after the previous tax year. So it??s important you keep documents such as payslips and P60s so you can check your balance.

It??s also important that you keep us up to date with your contact details in case we need to contact you about your loan.

How repayments are calculated

You??ll repay 6% of what your income over the current threshold (£404 a week, £1,750 a month or £21,000 a year) towards your Postgraduate Loan.

So, if you??re paid monthly and earn £2,500 a month before tax you??ll repay 6% of the difference between what you earn and the monthly threshold (£1,750).

£2,500 - £1,750 = £750

6% of £750 = £45

So your Postgraduate Loan repayment would be £45 that month.

A repayment will be taken even if you don??t earn £21,000 in a year but exceed the weekly or monthly threshold at any time, for example if you work overtime or get a bonus.

This table shows how much you??d repay towards your Postgraduate Loan each month depending on your income.

Income each year (before tax Monthly salary Monthly repayment
£21,000 £1,750 £0
£22,000 £1,833 £4
£23,500 £1,958 £12
£25,000 £2,083 £19
£27,000 £2,250 £30
£30,000 £2,500 £45

If you already have a student loan

A Postgraduate Loan won??t affect the repayment of any other student loans you already have for an undergraduate course. If you??ve had any other loans from the Student Loans Company (SLC) you??ll repay these at the same time.

How much you repay towards the student loans you already have will depend on when you studied.

If you started your undergraduate course on or after 1 September 2012 ?? Plan 2 [Click to expand]


If you started your undergraduate course between 1 September 1998 and 31 August 2012 ?? Plan 1 [Click to expand]


If you started your course before 1 September 1998 [Click to expand]

Interest

Interest is charged on your Postgraduate Loan from the day we make the first payment to you until your loan is repaid in full or written off.

Interest will be charged at the Retail Price Index (RPI) plus 3%; the current interest rate is 3.9%.

What if you go overseas?

If you??re planning on leaving the UK for more than three months after you??ve graduated or withdrawn from your course, contact us so we can advise you what you need to do. It??s also an opportunity to keep us up to date with your contact details should we need to contact you about your loan.

When is a Postgraduate Loan cancelled?

Any Postgraduate Loan balance remaining 30 years after you enter repayment will be written off.