How much student loan will I repay?

Find out how the Student Loans Company work out your repayments and what interest you’ll be charged.
Relevant to

How much you'll repay

How much student loan you'll repay | Student Finance England
Find out how to work out your regular repayments. Video provided by Student Finance England.
View more videos

What you need to know about interest

What you need to know about interest | Student Finance England
Find out how interest is applied to your student loan. Video provided by Student Finance England.
View more videos

Key facts on interest 2017/18

Key facts on interest | Student Finance England
Interest is charged on your student loan – make sure you understand how it affects you! Video provided by Student Finance England.
View more videos

The information on this page only applies to students applying for loans through Student Finance England. If you are applying from another UK country, your interest rate and repayment plan may differ.

The amount you repay is based on your income, not what you borrowed. You’ll repay 9% of your income above the repayment threshold. The current UK threshold is £21,000 a year, £1,750 a month or £404 a week.

For example, if you’re paid monthly and earn £2,250 before tax, you’ll repay 9% of the difference between what you earn and the monthly threshold:

  • £2,250-£1,750 = £500
  • 9% of £500 = £45

So your student loan repayment would be £45 in that month.

If your income changes, either rising or falling, your repayment amounts will change to reflect this. If you stop working, your repayments will stop until you start working again and your income is over the repayment threshold.

The table below gives some further examples of what your repayments might be.

Income each year before tax Monthly income before tax Approximate monthly repayment
£21,000 £1,750 £0
£22,000 £1,833 £7
£23,500 £1,958 £18
£25,000 £2,083 £29
£27,000 £2,250 £45
£30,000 £2,500 £67

 

Repayments will be taken if you go over the weekly or monthly threshold at any point in the year, for example if you work overtime or get a bonus. If at the end of the tax year your income has been below £21,000, you can contact SLC to apply for a refund.

You can also make extra voluntary repayments at any time.


Paying interest

Interest is charged from the day SLC makes your first payment, until your loan is repaid in full or cancelled.

The interest rate is based on the UK Retail Price Index (RPI)* and will vary depending on your circumstances. The interest rate is updated once a year in September, using the RPI from March of that year, meaning it may increase or decrease.

*RPI is a measure of UK inflation. It measures changes to the cost of living in the UK.

Your circumstances Interest
While you're studying up until the April you finish or leave your course Retail Price Index (RPI) plus 3%
From the April after you finish your course

Interest will be based on your income:

  • £21,000 or less = RPI
  • Between £21,000 and £41,000 = RPI plus up to 3%, depending on your income
  • Over £41,000 = RPI plus 3%
If you don't keep your details up-to-date RPI plus 3% will be applied to your loan, whatever your income, until the Student Loans Company has all the information they need.