Repaying your loan 2017/18


normally you don’t have to repay your loan until you’ve finished or left your course and your income is over the UK repayment threshold of 21,000 pounds a year, 1,750 pounds a month or 404 pounds a week. The amount you repay each month is based on your income, not what you borrowed! Here’s how you’ll repay your student loan in three easy steps. If you’re a full-time student, you’ll normally start repaying your loan the april after you finish or leave your course. If you’re a part-time student, you’ll be due to start repaying the april four years after the start of your course or the april after you finish or leave your course, whichever comes first. You’ll repay nine percent of your income over the repayment threshold. If your income changes, either rising or falling, your repayment amount will change to reflect this. If you stop working, your repayments will stop until you start working again and your income is over the threshold. If you are employed, your employer will take your repayments directly from your salary along with tax and national insurance. If you’re self-employed, you’ll make repayments directly to HM Revenue and Customs at the same time you pay tax. If you go overseas, you’ll have to repay your loan directly to us – so make sure you let us know before you go. After the end of the tax year, HMRC tell us how much you’ve repaid and we’ll send you a statement showing your repayments and any interest added to your account. You’re charged interest from the day your first payment is made until your loan is repaid in full or cancelled. The interest rate is based on the UK retail price index, and will vary depending on your circumstances. For more information on repayment go to, www.slc.co.uk/repayment And for helpful tools and guides on what, how and when to repay, visit our dedicated student finance zone on the student room.

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