Published on December 26th, 20110
Paying Back Your Student Loan
What Happens When You Need To Repay Your Student Loan
There is often much misunderstanding about when and how student loans are paid back so here are some important points to remember. For a full understanding it is best to contact your local council which deals with your loans or the Student loans company (SLC)
- Student loans are not paid back until you are earning more than £15,000 a year before tax (Currently); but when a student starts to pay more for their tuition fee’s the threshold gets higher t around £19,000 a year before tax.
- You will not have to start repaying your loan until the April after you have finished or left your course.
- The amount you repay each month will be directly proportional to your income above £15,000 a year.
- If you are self employed your repayments will be collected through the tax self-assessment system.
- Interest is applied to your student loans. However the interest is a rate linked to inflation so ‘technically’ you aren’t paying anymore back that you loaned.
- If you started your studies in 2006 or later, the Government will write off any part of your student loans left unpaid 25 years after you leave your course.
If you would like some more information on student loans, or see the official Student loans company (SLC) website.