Maximum student loan/maintenance loan (SFE question)

I think I’ll probably be given a high maintenance loan based on my parents’ incomes. Does this mean that I will have more money that needs to be paid off in the future? (So higher debt basically)

Reply 1

iL1L

I think so? But only when you start earning enough money after graduation.

Reply 2

normaw

Original post

by kittykitten12

I think I’ll probably be given a high maintenance loan based on my parents’ incomes. Does this mean that I will have more money that needs to be paid off in the future? (So higher debt basically)

What you pay back will depend on what you earn in the 40 years following graduation. Repayments start the April after you leave uni once you are earning over £25k per year. You will repay 9% of anything you earn over £25k. So if you earn £30k per year, you would pay back £450 per year (i.e. £37.5 per month). This figure is the same regardless of how much you borrow from student finance. Repayments stop once the loan is repaid or after 40 years - whichever comes first. I recommend you read the following:

https://www.moneysavingexpert.com/students/student-loans-england-plan-5/

Reply 3

kittykitten12

Original post

by normaw

What you pay back will depend on what you earn in the 40 years following graduation. Repayments start the April after you leave uni once you are earning over £25k per year. You will repay 9% of anything you earn over £25k. So if you earn £30k per year, you would pay back £450 per year (i.e. £37.5 per month). This figure is the same regardless of how much you borrow from student finance. Repayments stop once the loan is repaid or after 40 years - whichever comes first. I recommend you read the following:
https://www.moneysavingexpert.com/students/student-loans-england-plan-5/

Thanks so much!