CSLM11061 – FAQs: borrowers questions and answers: how much will I have to pay?


Suggested answer

The amount that you repay depends upon how much you earn.

At present, repayments are at a rate of 9 per cent of income over £15,000 per annum.

Your employer will make deductions if you earn more than £299 per week for a weekly pay period or £1261 per month for a monthly pay period.

HMRC action

None.

Notes:

  1. If the borrower requires further information he / she should be asked to contact the Student Loans Company on 0870 2406298
  2. The £299 weekly and £1261 monthly limit, below which no loan repayments need be made, is not an exact divisible of £15,000. It is possible that an employer or borrower may query this.

The apparent discrepancy is because Student Loan deductions are always rounded down. A borrower could therefore earn slightly more than the strict weekly threshold before making payments because the resulting liability is less than £1.

The Student Loan Deduction Tables have been devised to take the rounding - down factor into account.