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Student Loan Repayment

Whether you are currently in receipt of student loans or you have already graduated, knowing how student loan repayment works is very important. This page aims to help you understand the repayment system. Further information can be found on the Student Loan Company webpages at www.studentloanrepayment.co.uk.


I started my course after 1998 but before 2012

Your repayments will begin in the April after you have completed or left your course and will be taken directly from your salary. You will repay 9% of your income over the threshold of £17,775 towards your outstanding loans (maintenance and tuition fees).

The interest currently charged on loans taken prior to 2012 is 1.25%. Any oustanding loan balance will be written off 25 years after it becomes eligible to be repaid.

I started my course after 1 September 2012

Your repayments will begin once you have left or completed your studies and will be taken directly from your salary. You will repay 9% of your income over the threshold of £21,000 towards your outstanding loans (maintenance and tuition fees). The table below shows how your repayments are calculated:

Annual income before tax Monthly salary Monthly repayment
Up to £21,000 £1,750 £0
£22,000 £1,833 £7
£25,000 £2,083 £30
£30,000 £2,500 £67
£35,000 £2,916 £105

You will be charged interest on your loans of RPI+3% whilst you are studying. After you have left your course the interest applied will depend on your earnings:

  • Under £21,000= RPI
  • Between £21,000 and £41,000= RPI+ up to 3%
  • Over £41,000= RPI+3%

The interest rate is updated once a year in September, using the rate of RPI from the previous March. Any outstanding loan balance will be written off 30 years after it becomes eligible to be repaid.

How do my repayments work if I started my PGCE or MBChB course after 2012 but I have a loan from a previous degree?

  • The repayments of your first loan will begin in the April after you have left your course and are earning over £17,775. 9% of your income above £17,775 up to £21,000 will be allocated towards your first loan balance.
  • The repayment of your second loan will begin in the April after you have left or completed your studies and are earning over £21,000. 9% of your income above £21,000 will be allocated towards your second loan balance.

The interest currently charged on loans taken prior to 2012 is 1.25%. You will be charged interest on the loans you took out for courses commenced in 2012 of RPI+3% whilst you are studying. The interest applied after you have left your course will depend on your earnings:

  • Under £21,000= RPI
  • Between £21,000 and £41,000= RPI+ up to 3%
  • Over £41,000= RPI+3%

Any outstanding loan balance of your first loan will be written off 25 years after it becomes eligible to be repaid. For loans taken after 2012, the write off period will be 30 years. The interest rate for your plan 2 loan is updated once a year in September, using the rate of RPI from the previous March.

The repayment threshold has been frozen until 2021.

What if I choose to move abroad after I leave or complete my course?

If you intend to live abroad after you leave or complete your course you will still be required to repay your Student Loan. If you plan to live abroad for more than three months, you will need to notify the Student Loans Company who will inform you of the procedure for repayment. The repayment threshold will depend on the country that you move to. For more information, see www.studentloanrepayment.co.uk.