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When you start repaying. You’ll only repay your student loan when your income is over the threshold amount for your repayment plan, unless you’ve been overpaid. Your income is the amount you ...
- What You Pay
When you start repaying your student loan, ... You have a...
- What You Pay
- If your income changes during the year
- Interest
- If you’re on more than one plan type
- If you have more than one job
- If you’re self-employed
You’ll make a repayment if your income goes over the weekly or monthly threshold for your plan (for example, if you’re paid a bonus or overtime). You can ask for a refund at the end of the tax year if your annual income is less than the yearly threshold for your plan.
How much interest you’re charged depends on which plan you’re on. You’re currently charged:
•6.25% if you’re on Plan 1
•7.6% if you’re on Plan 2
•6.25% if you’re on Plan 4
•7.6% if you’re on Plan 5
•7.6% if you’re on a Postgraduate Loan plan
If you do not have a Postgraduate Loan
You’ll repay 9% of your income over the lowest threshold out of the plan types you have. You’ll only have a single repayment taken each time you get paid, even if you’re on more than one plan type.
Example
You’re on Plan 1 and Plan 2 and have an income of £25,200 a year, meaning you get paid £2,100 each month. This is over the Plan 1 threshold of £1,834 but under the Plan 2 threshold of £2,274. You’ll repay 9% of your income over £1,834 a month because that is the lowest threshold out of the plan types you have. Calculation: £2,100 – £1,834 (your income minus the lowest threshold) = £266 9% of £266 = £24 This means the amount you’d repay each month would be £24. If your income went over the Plan 2 threshold, you’d still only repay 9% of your income over the Plan 1 threshold. You would not have to make a separate repayment towards your Plan 2 loan.
If you have a Postgraduate Loan
You’ll repay 6% of your income over the Postgraduate Loan threshold (£21,000 a year) and 9% of your income over the lowest threshold for any other plan types you have.
Example
You have a Plan 1 loan and you have 2 jobs. Before tax and other deductions, you’re paid £1,000 a month from one job and £800 a month for the other. You will not have to make repayments because neither salary is above the £1,834 a month threshold.
Example
You have a Plan 2 loan and you have 2 jobs. Before tax and other deductions, you’re paid £2,300 a month from one job and £500 a month for the other. You will only make repayments on the income from the job that pays you £2,300 a month because it’s above the £2,274 threshold.
HM Revenue and Customs (HMRC) will work out how much you repay each year from your tax return. Your repayments will be based on your income for the whole year.
If you’ve already made repayments from a salary, HMRC will deduct them from the amount you have to repay.
Sep 5, 2024 · The interest rate on your Student Loan is usually RPI plus 3% while studying, and until the April after you've left your course. The RPI rate is generally set every September using the rate from March of the same year. In March 2024, RPI was 4.3%, so the Plan 2 interest rate is 7.3%.
As with all student loans, you'll only start paying this back once you're earning over a certain threshold. So, if your tuition fees are the maximum £9,250 in England, and you drop out midway through term two, you'll still have to repay two full terms of tuition fees - that's roughly £4,600 to pay back.
Jun 4, 2024 · With those thresholds in mind, you'll repay either: 9% of your income over the threshold if you're on Plan 1, 2, 4 or 5; 6% of your income over the threshold if you're on a postgraduate loan (Plan 3)
The important thing to remember is that the amount you’ll repay will be based on how much you earn, not how much you borrow. Once you leave your course, you’ll only repay when your income is above the repayment threshold. The threshold you’re on depends on which repayment plan you’re on. If your income changes, the amount you repay will ...
The following figures are the rates and thresholds for 2024: The maximum maintenance loan is now £13,348. Graduates repay 9% of everything they earn over £27,295. The rate of inflation is currently 4.3% (as at September 2024) The current rate of interest is 7.3% (as at September 2024).
