Repaying Your Loan

When will I pay back my loan?

Repayments will start the April after the completion of your course.

You pay back your loan (plus interest based on inflation rates) when you have finished your course and are earning more than £21,000 a year. Your repayments will stop if your income drops below £21,000 a year.

How much will I repay?

Your annual repayment amount will be 9% of any income that you earn over £21,000.

Your employer will work out your repayments and take them out of your salary with your tax.

If you are self employed you will make repayments as part of your self assessment tax return.

For example, if you were to earn £25,000 a year, you have to pay back £30 a month

You can pay back your loan early without any extra charge.

If you leave your current course, you will be required to pay back your loan (plus interest based on the rate of inflation) however this will only be the amount paid to your training provider.

Interest rates

You pay interest rates from the time your first payment is made until your loan is paid back in full.

Income

Interest rate

While you’re studying and until the April after
you leave the course
Rate of inflation (Retail Price Index) plus 3%
£21,000 or less
Rate of inflation
£21,000 to £41,000
Rate of inflation plus up to 3%
£41,000 and over
Rate of inflation plus 3%

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