Student Life Centre

Repaying your Student Loan

Repayment of student loans is over seen by the Student Loans Company rather than the individual nations funding bodies such as Student Finance England. Your repayment terms and conditions will differ depending on when you began your course.

Students who began their course before 1st September 2012.

Students who started their course before 1st September 2012 i.e. those paying about £3,600 in fee will pay 9% of income above £19,390 (£1,615 a month or £372 a week). This amount may increase in future years and will be announced in the Budget. For employees who pay tax via the PAYE system the money is deducted at source by your employer. Ex-students who don’t use the PAYE system or are living overseas should contact the Student Loans Company directly to find out how the money will be repaid.

If your income falls below the repayment threshold, your repayments will stop and only restart when your income is over the threshold again.You can also make additional voluntary repayments to SLC at any time.

Interest Charged on Loans

The interest charged on loans is set annually in Parliament and is announced in the November statement. In 2020/21 the interest rate is 1.1% APR.

Students who began their course after 1st September 2012.

Students who started their course after 1st September 2012 start to repay their loans from April 2016 or the April after their graduation whichever is the later date. Interest is charged on a loan from when the first instalment of the loan is paid. Interest is charged at different rates depending on your circumstances.

Students will repay 9% of gross income above £26,575 (£2,214 a month or £511 a week). For employees who pay tax via the PAYE system the money is deducted at source by your employer. Ex-students who don’t use the PAYE system or are living overseas should contact the Student Loans Company directly to find out how the money will be repaid.

If your income falls below the repayment threshold, your repayments will stop and only restart when your income is over the threshold again. You can also make additional voluntary repayments to SLC at any time.

More information can be found on The Student Loans Company Repayment Site or by reading the SLC Terms and Conditions.