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How and when you repay your Student Loan (courses starting before 1998)
If your course began before 1998, your Student Loan repayments will be made in monthly instalments. You can apply to defer your repayments if you earn under a certain amount.
Repaying your Student Loan
If you took out a Student Loan while on a university or college course that began before September 1998, you will repay it by making repayments in monthly instalments.
These repayments will usually be collected by direct debit from your bank account and paid to the Student Loans Company.
If your course began in or after September 1998, your Student Loan repayments will be made differently.
For more information, see 'Repaying Student Loans (courses starting from 1998)'.
How much you repay
If you have four or fewer loans for courses beginning before 1998, you will repay your loan in 60 monthly instalments. If you had five or more loans, you repay in 84 monthly instalments.
The monthly repayment amount is calculated on the basis of the total amount borrowed, plus interest (based on the rate of inflation), divided by the total number of months over which you repay.
From 1 September 2008 to 31 August 2009, the interest rate is 3.8 per cent.
Interest is calculated daily from the point at which your loan is paid to you, and is added to your account every month until the loan is repaid in full.
How much you still owe will be outlined on your annual statement, sent to you by the Student Loans Company.
Deferring repayments
If you earn under a certain amount and wish to delay repaying your Student Loan, you can apply to defer your repayments.
Making your first repayment
Repayments begin in the April after you graduate or stop attending your course. For example, if you graduated in June 2001 you would have commenced repayments in April 2002.
Two months before you are due to start repaying your loan, the Student Loans Company will send you a letter stating your balance, and confirming your bank details and monthly direct debit amount.
If your bank details have changed, you should immediately complete and return a new direct debit instruction to the Student Loans Company. If you do not defer repayment, you will then receive a schedule of the monthly repayments you will make between April and August.
Each September you will be provided with a schedule of the monthly repayments which will be made from then until the following August. This schedule will show any changes in the amount you repay if there has been a change in the interest rate.
If you have trouble repaying
If you have trouble making your monthly repayments but your monthly income is too much to be able to defer them, contact the Student Loans Company.
See the article 'If you have trouble repaying your Student Loan' for more details.
If your circumstances change
If there's a change to your contact details, income or marital status, let the Student Loans Company know so your account details are kept up to date.
Increasing your repayments to pay off your loan early
If you want to repay your loan early, either by increasing your monthly repayment or by making a payment before your repayments are scheduled to begin, you can do so by:
- making a payment by debit or credit card, either online or by contacting the Student Loans Company over the phone (there is a 1.5% surcharge added to credit card repayments) - minimum repayment amount by card is £5
- contacting the Student Loans Company to amend your existing direct debit
- setting up a standing order with your bank, using the student finance standing order form
- sending a cheque or postal order to the Student Loans Company, quoting your Student Loan account number
- sending a cash repayment (this must be done by registered post)
If you have more than one type of Student Loan
The way you repay your Student Loan is different depending on whether your course started before or after 1998. Most people will only have one type of Student Loan.
However, if you have borrowed under both repayment schemes, you may have a choice as to which loan you repay first. You can obtain further advice by calling the Student Loans Company.
Additional links
Student Loan repayment: online services
Use your online account to update personal details, check your balance or make a payment
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