Fees and funding - Student loan repayments | Harper Adams University

Undergraduate finance

Student loan repayments

Students from England, Wales and the EU (Plan 2)

The amount paid each month will depend on the graduates earnings, with repayment set at 9% of the gross salary over £25,000 (from April 2018). For example, if you earn £26,000 pa you will pay £7 per month.

  • Start paying back when earning over £25,000 pa (this threshold is expected to rise annually in line with average earnings).
  • Repayments start in the April following graduation.
  • Payments will be deducted directly from salary by your employer in the same way as income tax.
  • If a student goes on to be self employed as a graduate, the repayment amount is calculated by self-assessment and paid directly to the HMRC.
  • If your salary falls below £25,000 for any reason, such as a career break, or part-time working, repayments will stop.
  • The loan, if not repaid, will be written off after 30 years. 

Rates of interest - England, Wales and the EU

  • 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%.

The lower threshold amount will rise to £25,000 on April 6th 2018 and the upper threshold will rise to £45,000 from £41,000.

Students from Scotland and Northern Ireland (Plan 1)

The amount paid each month will depend on the graduates earnings, with repayment set at 9% of the gross salary over £18,330 (from April 2018). For example, if you earn £21,000pa you will pay £20 per month.

  • Start paying back when earning over £18,330 pa (this threshold is expected to rise annually in line with average earnings).
  • Repayments start in the April following graduation.
  • Payments will be deducted directly from salary by your employer in the same way as income tax.
  • If a student goes on to be self employed as a graduate, the repayment amount is calculated by self-assessment and paid directly to the HMRC.
  • If your salary falls below £18,330 for any reason, such as a career break, or part-time working, repayments will stop.
  • The loan, if not repaid, will be written off after 25 years (Northern Ireland) or 35 years (Scotland).

Rates of interest - Scotland and Northern Ireland

The current interest rate for plan 1 income contingent repayment loans is 1.25%.

More information on student loan repayments can be found at: www.studentloanrepayment.co.uk/ 

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