Off to uni in September and applying for Student Finance, but not sure what will happen once it comes time to repay your loan? It may seem a long way off, but its handy to know. We talk you through what you’ll need to pay and when.
You only have to pay back your Tuition Fee and Maintenance Loans, but not other financial help like grants and bursaries. You will still have to repay your student loan even if you leave your course early, but the earliest you start repaying is when your annual income is over £21,000.
You pay back 9% of your income over the minimum amount of £21,000. Below shows what this would look like:
|Your income per year||Monthly repayments|
|£21,000 and under||£0|
Interest is a set amount you pay for borrowing your Student loan. Interest starts being added to your loan from when you get your first payment at the start of your course. While you’re studying, interest is inflation (which means the rate of increase) plus 3%.
|£21,000 or less||Inflation|
|£21,000 to £41,000||Inflation plus up to 3%|
|Over £41,000||Inflation plus 3%|
The idea is that you only pay when you can afford to. So you don’t make repayments if you can’t find a job, lose your job or if you’re earning less than £21,000 a year.
Don’t forget to check out our article on saving money on your degree.