Frequently Asked Question - I know I can get a student loan, but how do I pay it all back?

I know I can get a student loan, but how do I pay it all back?

You’ll only start paying back your student loan once you’re earning over £21,000. The money will be taken from your monthly pay and is just 9% of your earnings over that threshold.

For more info about fees and funding, click here.

You will not have to repay your loan until you are earning in excess of £21,000 and the amount you pay is based on what you earn NOT what you owe.

In reality the repayments are small and look like this:

Income each year (before tax) Monthly salary (before tax) Approximate monthly repayment
£18,000 £1,500 £0
£21,000 £1,750 £0
£24,000 £2,000 £23
£30,000 £2,500 £68
£36,000 £3,000 £113
£40,000 £3,333 £143

If your earnings stop – your repayments stop and if you have not repaid the full amount after 30 years – the debt will be cancelled.

Tags: student loan