Loan Repayments
Student from England - full-time undergraduate
How are loan re-payments expected to work?
- ONLY START PAYING BACK WHEN EARNING OVER £21,000
- Then repay 9% of your income over £21,000. Eg Earning £25,000, pay 9% of £4,000 = £30 per month
- Remember monthly repayments are the same whether the fees are £6,000 or £9,000.
- If your salary falls back below £21,000 your repayments stop
- Loan repayment deducted from your salary monthly through the tax system
- If you have not repaid it after 30 years it is written off
Rates of interest
Government plans are:
- Interest on your loan will be applied at inflation (Retail Price Index - RPI) plus 3% while you are studying and up to the April after you leave university.
- From then, if you are earning below £21,000 interest will be applied at the rate of inflation
- Once you are earning between £21,000 and £41,000 interest will be applied between RPI and RPI plus 3% on a scale depending on income
- For graduates earning over £41,000 interest will be applied at RPI plus 3%
How can you find out more?
For further information go to: www.direct.gov.uk/studentfinance or visit the MoneySavingExpert guide to 2012 student finance.
Or contact us:
Claire Davies
Admissions Officer
Telephone: +44 (0)1952 81 5016
Email: studentfinance@harper-adams.ac.uk
This information is correct at the time of publication (April 2011). It is subject to Parliamentary approval.
