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 £25,725.

• Start paying back when earning over £25,725 pa (this threshold is expected to rise annually in line with average earnings).
• Repayments start in the April after you leave your course.
• 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 £25,725 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 £25,725 interest will be applied at the rate of inflation.
• Once you are earning between £25,725 and £46,305 interest will be applied between RPI and RPI plus 3% on a scale depending on income.
• For graduates earning over £46,305 interest will be applied at RPI plus 3%.

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 £18,935.

• Start paying back when earning over £18,935 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 £18,935 for any reason, such as a career break, or part-time working, repayments will stop.

Rates of interest - Scotland and Northern Ireland

The current interest rate for plan 1 income contingent repayment loans is 1.75%.

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