You will only start repaying any government loans in the April after you leave university, if you are in work and earning over £21,000 per year.*
Repayments will be made at 9% of income above this £21,000 threshold so the amount repaid each month will depend on your earnings. If for any reason your income falls below £21,000, your repayments will be suspended. Payments are straightforward as they will be deducted atomatically from your pay through the tax system (PAYE).
If you have not paid off your loan after 30 years all outstanding repayments will be written off.
* Following an announcement from the Government in October 2017, it is anticipated that this threshold will rise to £25,000 from April 2018.
The interest rates you pay on your student loans will be based on your income.
|Your income per year||Interest rate on your loan|
|No salary while you're studying||Rate of inflation plus 3%|
|Under £21,000||Rate of inflation|
|£21,000 - £41,000||Rate of inflation plus a rate of up to 3% depending on your salary|
|Over £41,000||Rate of inflation plus 3%|
Source GOV.UK, November 2017