Paying back your student loan: courses starting after 1 September :Cross Stitch – Education and learning
After you finish your course and earn more than a certain amount, you start paying back your student loan (plus interest). Find out how much interest you pay on your loan and how much your monthly payments will be.
Full-time and part-time students who start their course after 1 September 2023 begin paying back their student loan once they earn more than £21,000 year.
Repayments for courses starting after 1 September 2023 won’t begin until April 2016.
For example, if your course finishes in June 2015 and you get a job paying £25,000 in September 2015, you start repayments in April 2016.
If your income falls below £21,000 a year, your repayments stop.
If you’re a part-time student earning more than £21,000 a year you start repaying your loan in the April four years after starting your course. This applies even if you’re still studying.
Students can pay back all or some of their loan at any time without incurring an early repayment charge.
Courses starting before 1 September 2023
Different rules apply to repayments if your course starts before September 2012 – see ‘Paying back your student loan 2011/12’.
You’re charged interest on your loan from the time you get your first payment in university until you pay your loan back in full.
The amount of interest you’re charged varies (see table). The actual interest rates depend on the rate of inflation.
| while you’re studying | rate of inflation plus 3 per cent |
| £21,000 or less | rate of inflation |
| £21,000 – 41,000 | varies between the rate of inflation and the rate of inflation plus 3 per cent depending on your income |
| £41,000 or more | rate of inflation plus 3 per cent |
You pay 9 per cent of your income over the threshold of £21,000 a year.
For example, your course starts in September 2012 and you finish in June 2015. In September 2015 you’re earning £25,000. This is £4,000 over the £21,000 threshold. You pay 9% of £4,000 which is £360. This means from April 2016 you pay back £30 per month.
| £21,000 and under | no repayments |
| £25,000 | £30 |
| £30,000 | £67.50 |
| £40,000 | £142.50 |
| £50,000 | £217.50 |
| £60,000 | £292.50 |
You must tell your university or college and Student Finance England if you leave your course early.
You have to repay any loans or grants you were paid but not entitled to in one of the following ways:
- repay the amount in full
- set up a monthly repayment plan
If you leave your course early you need to repay a percentage of the Tuition Fee Loan for that year. The percentages are:
- 25 per cent during term one
- 50 per cent during term two
- 100 per cent during term three
Find out more about how to repay your loan if you leave your course early by contacting the collections department of the Student Loans Company on 0845 073 8895.
How you repay your student loan depends on whether you’re an employee or self-employed.
If you’re an employee
Your employer will calculate your repayment and take it off your salary every month with your tax. Check your pay slip to see how much has been taken to pay your student loan.
If you haven’t worked since leaving your course or earn less than £21,000, you won’t have any repayments deducted from your salary.
If you’re self-employed
You need to work out and make your own repayments. This is like working out your tax and National Insurance payments.
Students can pay back all or some of their loan at any time without incurring an early repayment charge.