Paying Back Your Student Loan

When do I start to pay it back?

Assuming that you started your course in September 1988 or later, you'll start to pay back your loans no earlier than the April following either your graduation or when you leave the course. Even then you only start paying it back if you're earning over £15,000 gross per year.

Will there be a lot of interest added to my loan amount?

There is interest added to student loans. For mainstream student loans this is tied to inflation. For example, at the moment interest is 2.4%.

How much can I pay back at one time?

You can pay back your student loans at any time, in any amount that you want. But the minimum that you'll be required to repay once you graduate is 9% of income over 15,000 pounds gross per annum, which will start the April after you graduate or otherwise leave your course.

How long have I got to pay it back?

For students in England that started in September 2006 or later,, the longest that you will have to pay back a student loan is 25 years from the April after you graduate or leave the course. How long you will take to pay it back will depend on how much loan money that you have and how much you earn. If you never earn over £15,000 you will never be required to pay anything back, and your loan will be written off after 25 years. In other parts of the UK the rules are broadly similar, but you should check to make sure that these are the same.

Can I choose to pay back more or less each month?

You can't choose to pay less back per month; it will be taken out through the tax system, so the minimum amount will be taken out whether you want it to or not. You can choose to pay more a month, which is a matter of calling up the student loans company and arranging either direct debit or paying by card.

What happens if my circumstances change when repaying my loan?

Because loan repayments are taken out through the tax system, if you suddenly start to earn less than £15,000 per annum, the repayments will stop automatically, so you won't have to do anything. If you start to earn more, you'll make larger repayments. If your income goes up and down throughout the year you can contact the student loans company for a refund of those payments, although you will still owe that money in the longer term.