Repaying government support for students who started their course in 2012
UK and EU students who started University in 2012, who take out maintenance loans and tuition loans whilst at University, will be expected to start repaying this cost once they have left University and are earning above a certain amount.
What will I need to repay?
Any loans you take out from the government for your tuition or maintenance will be added together and form your student debt. Each year you should receive a statement which details how much your debt is and how much interest has been added.
You do not have to repay any grants as part of this process. Oxford bursaries will also not need to be repaid.
What and when will I have to repay?
English and Welsh students
You will not start repaying anything until April 2016 at the earliest, once you have left your course (whether or not you have completed) and are earning over £21,000 per year. Repayments are usually taken from your salary but if you live overseas you have to make alternative arrangements for payment. The length of time it will take you to repay varies depending upon how much you borrowed. English and Welsh students will normally have their loans written off 30 years after they become eligible to be repaid.
The amount you pay each month is not affected by how much you have borrowed but by what you earn; this will be 9% of your earnings over £21,000. For example:
| Salary | Amount of salary from which 9% will be deducted | Annual repayment | Monthly repayment |
|---|---|---|---|
| Up to £21,000 | £0 | £0 | £0 |
| £25,000 | £4,000 | £360 | £30 |
| £30,000 | £9,000 | £810 | £68 |
| £35,000 | £18,635 | £1,260 | £105 |
| £40,000 | £23,635 | £1,710 | £143 |
| £45,000 | £28,635 | £2,160 | £180 |
Northern Irish and Scottish students
You will not start repaying anything until the April after you have left your course (whether or not you have completed) and are earning over £16,365 per year. Repayments are usually taken from your salary but if you live overseas you have to make alternative arrangements for payment. The length of time it will take you to repay varies depending upon how much you borrowed. Northern Irish students will normally have their loans written off 25 years after they become eligible to be repaid. For Scottish students, this is 35 years.
The amount you pay each month is not affected by how much you have borrowed but by what you earn; this will be 9% of your earnings over £16,365. For example:
| Salary | Amount of salary from which 9% will be deducted | Annual repayment | Monthly repayment |
|---|---|---|---|
| Up to £16,365 | £0 | £0 | £0 |
| £20,000 | £3,635 | £327 | £27 |
| £25,000 | £8,635 | £777 | £65 |
| £30,000 | £13,635 | £1,227 | £102 |
| £35,000 | £19,205 | £1,677 | £140 |
| £40,000 | £24,205 | £2,127 | £177 |
| £45,000 | £29,205 | £2,628 | £215 |
EU students
If you reside outside the UK, the repayment bandings and the subsequent rate at which interest is applied is dependent on the country you are living in. Visit the Student Loan Repayment website for more information.
How much will I pay in total?
As well as repaying the original amount you borrowed, you will have to repay the interest which is added to this. Interest will be added to the outstanding balance each year, not the original amount you borrowed.
English and Welsh students
The interest rate will vary depending upon the borrower's circumstances and the Retail Price Index (RPI), which is a measure of inflation.
| Whilst studying | |
| After studying and earning less than £21,000 | RPI |
| After studying and earning between £21,000 and £41,000 | RPI plus an increasing interest rate up to £3% |
| After studying and earning over £41,000 | RPI plus £3% |
Scottish and Northern Irish students
The interest rate for Scottish and Northern Irish students is set by the Department for Business, Innovation and Skills each year. It is normally based on the Retail Price Index each March and takes effect from the September of that year.