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Student loan repayments based on income

If you started your course in or after 1998, your student loan repayments will be based on your income.

If you earn less than a certain level of income - the 'repayment threshold' - you will not be required to repay anything. If you earn above the threshold, you will repay a percentage of the amount you earn over the threshold.

If you started your course before 1998, you will have a different type of student loan. For further information, see 'Repaying student loans (courses starting before 1998)'.

• Repaying student loans (courses starting before 1998)

How much you need to earn before repayments start

The repayment threshold for student loans, before deductions, is currently:

This is equivalent to:

If your income exceeds these amounts, you will be required to make repayments. In most cases, these repayments are collected automatically through the tax system.

Any disability-related benefits you receive will not be counted towards the £15,000 threshold, even if they are taxable. If you receive a disability-related benefit and are permanently unfit for work, your loan will be cancelled.

• How student loan repayments are worked out (courses starting from 1998)
• Financial support (disabled people section)

When repayments begin

Your student loan repayments will normally start on 6 April after you graduate, or stop attending your course.

For example:

If the April following your last date of attendance has already passed, your repayments will commence as soon as can be arranged, and you will only make repayments from this point. Repayments will only begin if you earn over the threshold, and will stop if your earnings fall under the threshold.

How your student loan repayments are made

Student loan repayments are made in one of three different ways, according to what type of employment situation you are in:

For further information on making repayments in any of these ways, refer to the articles below.

• Repaying student loans through PAYE
• Repaying student loans through Self Assessment
• Repaying student loans when you move overseas

Managing your student loan

Once you start repaying your student loan, it is possible to

• Repaying student loans more quickly and getting refunds
• Finding out your student loan balance

If you have more than one type of student loan

Student loan repayments based on income were introduced in 1998. For courses beginning before 1998, student loan repayments are based over a fixed loan term (these are sometimes known as 'mortgage-style' repayments).

Most people will only have one type of loan. However, if you have borrowed under both repayment schemes, you could have a choice as to which loan you repay first. If you exceed both repayment thresholds, you can obtain further advice by calling the Student Loans Company.

• How and when you repay your student loan (courses starting before 1998)
• Contact the Student Loans Company repayment helpline (for courses starting from 1998)

Student Finance Direct and the Student Loans Company

If you applied for student support from 2004 onwards, you will have dealt with Student Finance Direct. This is a service delivery partner of the Student Loans Company, who administers the collection of your student loans via the Income Contingent Repayment Scheme.