Website of the UK government

When repayments start

Full-time and part-time students who start their course after 1 September 2012 begin paying back their student loan once they earn more than £21,000 year. This is currently subject to parliamentary approval.

Repayments for courses starting after 1 September 2012 won't begin until April 2016.

For example, if your course finishes in June 2015 and you get a job paying £25,000 in September 2015, you start repayments in April 2016.

If your income falls below £21,000 a year, your repayments stop.

• Download Student finance - how and when to repay (PDF, 410K)

Interest on your student loans

You’re charged interest on your loan from the time you get your first payment in university until you pay your loan back in full.

The amount of interest you’re charged varies (see table). The actual interest rates depend on the rate of inflation.

Your income per year	Interest rate on your loan
while you're studying	rate of inflation plus 3 per cent
£21,000 or less	rate of inflation
£21,000 -  41,000	varies between the rate of inflation and the rate of  infation plus 3 per cent depending on your income
£41,000 or more	rate of inflation plus 3 per cent

Your monthly payments

You pay 9 per cent of your income over the threshold of £21,000 a year.

For example, your course starts in September 2012 and you finish in June 2015. In September 2015 you’re earning £25,000. This is £4,000 over the £21,000 threshold. You pay 9% of £4,000 which is £360. This means from April 2016 you pay back £30 per month.

Your income per year	Monthly repayments
£21,000 and under	no repayments
£25,000	£30
£30,000	£67.50
£40,000	£142.50
£50,000	£217.50
£60,000	£292.50

If you leave your course early

If you leave your course early you need to repay a percentage of the Tuition Fee Loan for that year. The percentages are:

• 25 per cent during term one
• 50 per cent during term two
• 100 per cent during term three
  

How you pay back your loan

How you repay your student loan depends on whether you’re an employee or self-employed.

If you’re an employee

Your employer will calculate your repayment and take it off your salary every month with your tax. Check your pay slip to see how much has been taken to pay your student loan. 

If you haven’t worked since leaving your course or earn less than £21,000, you won’t have any repayments deducted from your salary.

If you’re self-employed

You need to work out and make your own repayments. This is like working out your tax and National Insurance payments.

• Repaying your loan through PAYE Opens new window

• Repaying your loan through self-assessment Opens new window

If your course started before September 1998

Different rules apply if your course started before September 1998. Check the Student Loan Repayment website for more information.

• Repaying loans from before September 1998 Opens new window

Checking your loan balance

You will get statements each year from the Student Loans Company.

You can also check your balance on the Student Loans Company repayment website.

• Check your student loan balance Opens new window

Disabled students

If you get disability benefits, these will not be counted towards the income thresholds of £15,000 or £21,000, even if they are taxable. If you’re permanently unfit for work, your loan may be cancelled. You’ll need to provide evidence of your medical condition and your benefits. Contact the Student Loans Company to find out if your loan can be cancelled.

• Contact the Student Loans Company about repayments

• Financial support (disabled people section)

Repaying your loan quicker

The rules on making payments on top of your monthly repayments haven’t been finalised. A consultation about this closed 20 September 2011 and the government's response has not yet been published.

• Consultation: student loan repayments 2012/13 Opens new window

If you go abroad

If you go abroad for more than three months, you need to let the Student Loans Company know. You need to fill in an overseas income assessment form and give evidence of your income or means of support while you’re abroad.  You’ll then be given a repayment schedule.

• Download Overseas Income Assessment Form (OVFA) (PDF, 56K)

• Help with PDF files

More useful links

• Paying back your student loan for courses starting before 1 September 2012