It's about what you earn, not what you owe
If you have taken out a government loan via the Student Loans Company then the repayments will only begin once:
- you have left university
- you are in employment
- you are earning over a certain amount (the threshold)
Your repayments are linked to your earnings and not the loan itself, so the amount you owe in total will have no effect on your repayments.
Instead the amount you repay per month is calculated on how much you’re earning above the threshold – the threshold varies depending on the type of loan (undergraduate or postgraduate) and where your regional funding body is based in the UK.
Undergraduate loan repayment example
The current repayment threshold for students who normally live in England, Northern Ireland or Wales is £27,295 a year, £2,274 a month, or £524 a week.
For Scottish students, the threshold is £25,000/year in 2022–23.
Loan repayments are calculated at 9% of the amount you’re earning over the repayment threshold.
So if you normally live in England and you're earning £30,000/year, you are earning £2,705 over the current annual threshold for repayments.
Your repayments will be calculated at 9% of this amount.
9% of £2,705 is £243.45.
£243.45 spread over 12 months is £20.29, which will be your monthly repayments.
If your income falls below the repayment threshold, repayments will stop and only restart when your income is over the threshold again.
Postgraduate loan repayment example
The current repayment threshold for students who took out a Postgraduate Master’s Loan on or after 1 August 2016 or a Postgraduate Doctoral Loan on or after 1 August 2018 is £21,000 a year, £1,750 a month or £404 a week in the UK.
Loan repayments are calculated at 6% (9% in Scotland and Northern Ireland) of the amount you’re earning over the threshold.
If you're earning £45,000/year, you are earning £24,000 over the annual threshold for repayments.
Your repayments will be calculated at 6% of this amount.
6% of £24,000 is £1,440.
£1,440 spread over 12 months is £120, which will be your monthly repayments.
If your income falls below the repayment threshold, repayments will stop and only restart when your income is over the threshold again.
Repaying undergraduate and postgraduate loans
If you have taken out an undergraduate and postgraduate student loan, you'll repay both at the same time, but they are treated separately.
This is because the 6% you repay above £21,000 on a postgraduate loan is lower than the 9% above £27,295 you repay on undergraduate loans.
Once the balance on one loan is cleared you stop paying it, but will keep paying the other until that is also cleared.
Students from Northern Ireland, Scotland and Wales
If you normally live in Northern Ireland, Scotland or Wales, your repayments will be managed by your regional funding body. See the below websites for more information.
Northern Ireland:
Scotland:
Wales: