repay

Repayments and Interest

You’ll start repaying your loan the April after you graduate or leave your course. The amount you repay depends on how much you earn and when you started your course. Interest will be charged from the date of your first instalment and is linked to the rate of inflation.

I started my course after September 2012

You’ll start to repay your loan the April after you graduate and only if you’re earning over £25,000 per year. You’ll pay 9% of anything over £25,000 and this will come directly from your wages. This means if you earn £30,000 a year you’ll pay 9% of £5,000 a year, which is £37.50 a month.

Interest rates on tuition fee and maintenance loans are calculated as the current Retail Price Index (RPI) plus 3%. Since 2012 interest rates have been:

  • 2012/13: RPI (3.6%) plus 3% = 6.6%
  • 2013/14: RPI (3.3%) plus 3% = 6.3%
  • 2014/15: RPI (2.5%) plus 3% = 5.5%
  • 2015/16: RPI (0.9%) plus 3% = 3.9%
  • 2016/17: RPI (1.6%) plus 3% = 4.6%

In 2017/18 interest is 6.1% (calculated as RPI (3.1%) plus 3%).

I started my course before September 2012

You’ll repay 9% of any income you earn over £17,795 per year and this will come directly from your wages. This means if you earn £25,000 per year you’ll repay 9% of £7,505, which is around £56 a month.

The current interest rate is 1.25%. Detailed interest rates for students on plan 1 can be found on the Student Loan Repayments Portal.

Where can I get extra help?

You can find detailed information on interest and repayments on the Student Loan Repayment Portal. If you need to discuss your repayments you can call SFE on 0300 100 0611.