Repayments will be made at 9% of income above this £27,295 threshold so the amount repaid each month will depend on your earnings. If for any reason your income falls below £27,295, 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.
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 £27,295||Rate of inflation|
|£27,295 - £49,130||Rate of inflation plus a rate of up to 3% depending on your salary|
|Over £49,130||Rate of inflation plus 3%|
* The above interest rate thresholds are applicable from April 2022, subject to parlimentary approval.
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