For undergraduates, student education loans may appear to be a worrying level of debt – however you will pay only straight back 9% of one's profits above a particular earnings. Study our fast guide to get out what you ought to realize about education loan repayments.
Great britain's education loan system
You deal with the student finance body for the nation where you originally live – England, Northern Ireland, Scotland or Wales when you take out a UK student loan. The mortgage it self is administered because of the learning student Loans Company. Unlike a commercial loan, everything you repay is dependent on your profits, not simply how much you lent.
Present undergraduates will probably come under 1 of 2 education loan repayment systems – Arrange 1 or Arrange 2 – which may have various thresholds and prices for repayment. That you do not get to find the plan you're on, it is done based on which country your pupil finance arrived from. Arrange 1 is relevant to people that have student finance from Northern Ireland and Scotland. Undergraduates from England or Wales whom began their program after 2012 come under Arrange 2.
When do education loan repayments begin?
You'll be entitled to begin student loan repayments within the April once you've completed or kept your program. Whether you spend or otherwise not depends on your earnings.
There was at least earnings 'repayment threshold' that you'll need certainly to make before starting to settle your education loan. The payment limit is placed because of the national federal federal federal government and it is susceptible to alter. From 6th 2019, students will need to earn more than the following april:
|Nation/Plan||England and Wales (Plan 2)||Northern Ireland and Scotland (Plan 1)|