You will only start repaying any government loans in the April after you leave university, if you are in work and earning over £27,295 per year.

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.

Interest rates

The interest rates you pay on your student loans will be based on your income.*

Your income per yearInterest 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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