Student loan repayment – depending on when and where you graduated from will affect what your loan repayment details will be. Find out more about Short Term Loans for Students.
Find Student Loan Repayment Information
If you are an English or Welsh student that started before the 1st September 2012 or a Scottish or student from Northern Ireland if you earn over £17,335 you will be required to start loan repayment. This figure may change every year on the 6th April.
If the above describes your situation the soonest you will be required to start making your student loan repayment is the April after you finish your course. However, this will only occur if your income is over £17,335.
If you do not earn over this amount or it drops below this amount you will not have to make any payments.
When making your student loan repayment you are required to pay back 9% of your income over the amount of £17,335. So for example if you earned £23,335 you earn £6000 over and so you repay back 9% of this, which is £540.
Repaying student loans
The interest you pay on your student loan starts being added as soon as you get your first payment. Currently this rate is 0.9%. If you are self employed the above still applies. Whatever income you make over £17,335 you will pay back 9% of this.
However if the above does not describe your circumstance then the following is how you will make your student loan repayment. If you are studying the earliest you will make your student loan repayment is April 2016.
If however you studied September 2015 or later the soonest you will repay is the April after you finish your course. In these situations you will only start making your student loan repayment until your annual income is over £21,000.
Just like before whatever income you make over the £21,000 will be charged the 9%. For example if you earned £35,000, you will be required to pay back £1260 that year. The interest in this situation is inflation plus 3%.
No matter which of the above reflects your situation your repayments will be taken out of your salary, along with your regular tax and National Insurance. If you are self employed, HM Revenue and Customs will calculate this for you at the same time you pay your tax by using the Student Loan Calculator.