Repaying Your Loan
• The student loan repayment comes out of your monthly pay once you earn over £ 25,000 per year *( before tax), and you don’ t have to calculate it yourself, so it’ s more like a tax on earnings.
• If your earnings drop for whatever reason, you don’ t have to keep repaying your loan at the previous amount. So you will never have to pay more than you can afford.
• Student loans don’ t affect your credit report.
• You’ ll pay back 9 % of what you earn over £ 25,000 *, so if you earn £ 26,000, you’ ll pay back 9 % of the £ 1000 you
• Interest will be applied to the loan at a rate of: Retail Price Index + 0 %*.
2024 employment rates:
are earning over the £ 25,000- Graduate 87.3 % threshold. As this currently
- Non-graduate 69.7 % stands this would be
£ 7.50 a month *. Graduates earned on average
£ 7,000 more than the average non-graduates’.
gov. uk, Graduate Labour
• After 40 years any remaining
Market Statistics, 2025 loan is wiped off!*
• You don’ t need to start repaying until the April following completion or withdrawal from your course and even then, not until you’ re earning over the threshold.
• Remember, what you pay is based on what you earn, not what you owe.
Approximate monthly repayments for a range of salaries
Annual salary |
9 % deducted from |
Monthly repayment |
£ 25,000 or less |
£ 0 |
£ 0 |
£ 27,000 |
£ 2,000 |
£ 15 |
£ 30,000 |
£ 5,000 |
£ 37.50 |
£ 35,000 |
£ 10,000 |
£ 75 |
* Figures are subject to change, but correct for academic year 2026 / 27. To see the most up-to-date and conclusive information visit: gov. uk / student-finance
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