When do you start repaying your UK student loan? You will start repaying your UK student loan in April after you have graduated or left your course, and only if you earn over the repayment threshold, which is currently £27,295 per year.
How much will you repay? You must repay 9% of your income above the repayment threshold. So, for example, if you earn £30,000 per year, you will refund 9% of the amount over the point, which is £2,705 per year or £225 per month.
How is the loan repaid? Your UK student loan will be compensated through the tax system. Your employer will deduct repayments from your salary before you receive it and pay it directly to the UK government’s Student Loans Company.
Is there a deadline for repaying the loan? You will have up to 30 years to repay your UK student loan, after which any remaining balance will be written off. However, the remaining balance will be written off if you have not fully compensated your loan by the end of the 30 years.
Can you make early repayments? You can make early repayments on your UK student loan at any time without incurring a penalty. This can be an excellent way to reduce the overall interest you will have to pay.
What happens if you move abroad? If you move abroad, you will still be required to repay your UK student loan if you earn above the repayment threshold. However, the process for repaying your loan will differ depending on where you live and work.
What if you are struggling to make repayments? If you struggle to repay your UK student loan, you should contact the Student Loans Company to discuss your options. You may be able to defer your repayments for some time or make reduced payments based on your income.
