Loan Repayments 2014 Entry
Please note: this information applies to students from England. Some information on student loan arrangements is different for students from Scotland, Wales and Northern Ireland. Please see your student finance body for details.
- Repayments are based on what you earn, not what you owe
- You will not start to make repayments until you earn over £21,000 a year
- If your income falls below £21,000, your repayments stop until you start earning £21,000 again
- You repay 9% of your income above £21,000. The amount you repay depends on how much you earn, for example, if your salary was £25,000, the nine per cent would only apply to £4,000, meaning you would repay £30 a month (see table below)
- All your student loans are added together and a single repayment will be deducted from your salary, normally through the tax system
- Any outstanding balance is written off after 30 years
See table below for example salaries and typical repayment amounts:
| Salary | Amount of salary from which 9% will be deducted | Monthly repayment |
|---|---|---|
| £25,000 | £4,000 | £30.00 |
| £30,000 | £9,000 | £67.50 |
| £35,000 | £14,000 | £105.00 |
| £40,000 | £19,000 | £142.50 |
| £45,000 | £24,000 | £180.00 |
Rates of interest
Interest on your loan will be applied at the rate of inflation plus 3% while you are studying and up until the April after you leave university or college.
From the April after you leave your course, interest will be applied at:
- the rate of inflation if you are earning below £21,000
- the rate of inflation and up to plus 3% on a gradual scale if you earn between £21,000 and £41,000
- the rate of inflation plus 3% if you earn over £41,000
