Repaying your student loan, a blog by Georgia- Student Money Assistant

As it comes to the end of the academic year, and your degree for many, you might be thinking about how you will pay back your Student Loan. Don’t panic, as how much you repay depends on your income, and if you are not earning enough, then you do not have to repay anything at all!

Firstly, no matter how much you are earning, you do not start repayments until the April after you finish your course. Even after April, you will not start repaying until you earn over the repayment threshold. Students from England who graduate this year will have a Plan 2 loan, so the repayment threshold is £27,295. Once you are earning over the threshold you repay just 9% of any earnings over it. For example, if you have an income of £31,000, then you will be repaying just £28 per month towards your Student Loan. If you started your course after August 2023, or have a loan from Student Finance Wales, Student Finance Northern Ireland, or the Student Award Agency Scotland, have a look at this guide to repaying your student loan to find out your repayment threshold

For most people, making these repayments is easy as they are taken out of your salary at the same time as Tax and National Insurance. If you are self-employed or work outside the UK after leaving university, then it can be slightly more complicated as you will have to set up repayment yourself.

Interest is added to the balance of your student loan. The interest differs depending on which plan you are on. For students graduating this year it is currently 7.9%. However, both the interest, and any remaining balance of the loan are written off after 30 years.

If you still have questions, then visit the Student Finance England webpage. Or contact Student Funding Support by email (studentfunding@warwick.ac.ukLink opens in a new window), phone (024 7615 0096), or in person at the Wellbeing Reception in Senate House (10am-3pm Monday-Friday).