When do I start repaying?
You are required to start repaying loans for fees and living costs in the financial year after you graduate.
Do I have to earn a certain amount of money?
Yes, you only start repaying loans if your annual income is above £25,000.
How do I repay?
Repayments are collected monthly through the UK tax system by HMRC, or through your annual self–assessment if you are self-employed.
How much do I have to pay?
The repayment rate is 9% of your income above the first £25,000, regardless of how much you have borrowed.
If, after 40 years you have not repaid the full amount, the remainder of the loan will be written off.
Repayment examples
|
Annual income before tax
|
Approximate annual repayment
|
|
£25,000
|
£0
|
|
£30,000
|
£450
|
|
£36,000
|
£990
|
|
£40,000
|
£1,350
|