Student Loan Repayment – Carmel 6th Form

Student Loan Repayment

Loans have to be repaid after you graduate, but the interest charged is linked to inflation so that the money you repay is the same, in real terms, as the amount you borrowed.  You will only have to start repaying loans from the April of the year after you graduate, and only when you are earning over £21,000 per year.

Repayment Rates

You will make repayments at a rate of 9% of any amount you earn over £25,000. For example, if you earn £27,000, you will only make repayments on £2,000.  Some examples of loan repayments linked to salaries are provided below.  Your student loan and fee loan will be treated as one amount for the purposes of repayment.

 Graduate Salary per year   Payment per month 
 £25,000  nil
 £27,000  £15
 £30,000  £37

No matter how much you owe, you only pay back according to how much you earn above £25,000.  If, after 25 years, you have not paid off your loan, then the government will write off the remainder of the money, which means you do not have to pay anything more back.