Students: Time limits and interest rates for repaying loans

 

There is no time limit for you to repay your loan.

The amount you will pay back is worked out as 9% of your income over and above the starting limit, £15,000 a year (£1250 a month or £288 a week). So, the amount you pay each week or month will depend on how much you've earned. How long you take to repay your loan depends on how much your repay each week or month. You cannot defer your student loan repayments.

You will stop making repayments when:

  • your loan is repaid, or
  • you reach the age of 65, or
  • you receive a disability related benefit and are permanently unfit for work, or
  • you die.

Note: If you leave the UK you should contact the Student Loans Company (SLC) to arrange direct payment.

You should contact the SLC with any questions you have about your individual circumstances. They will be able to answer your questions and advise you on the options available to you. We are unable to offer any advice in this area. The SLC's helpline number is 0800 40 50 10.

Interest rates
The interest the SLC charge on your student loan is linked to the rate of inflation and adjusted in line with the Retail Price Index. Check the SLC's website for current rates.

Voluntary repayments
There is a way to pay your loan off quicker, as well as having repayments deducted by your employer, you can make voluntary repayments of £5.00 or more direct to the Student Loans Company yourself, at any time, even if you do not earn above the threshold.

You can do this by sending a cheque to SLC, telling them your name and student reference number. If you do choose to make voluntary payments it will not stop your employer making deductions from your pay for the balance of your loan, but your employer will stop making deductions sooner.

For information on how to make voluntary repayments see our section on Making Repayments.

You can get more information by contacting the SLC.

Repaying your loan late
Your employer may have made a mistake and under deducted loan repayments. The error will normally extend the repayment period and increase the amount of interest charged by the SLC.

If you have any queries about repaying your loan late you should contact the SLC
Helpline: 0800 40 50 10.
   
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