Graduating this year? Repaying student loans after graduating can be a daunting task. Here is the essential lowdown on repaying your loans:
You need to pay back:
- Tuition Fee Loans
- Maintenance Loans
- Postgraduate Loans
You do not need to pay back other student finance, for example grants and bursaries, unless you’ve been paid too much. You must still repay your student loan even if you leave your course early.
You’ll only repay your student loan when your income is over the threshold amount for your repayment plan.
The earliest you’ll start repaying is:
- The April after you leave your course
- The April 4 years after the course started if your course is longer than 4 years, for example if you’re studying part-time or doing a Postgraduate Doctoral course.
- April 2026 if you’re on Plan 5
Your repayments automatically stop if:
- You stop working
- Your income falls below the threshold
- You’ve repaid the amount in full
How to repay
- If you’re employed – your repayments will be taken out of your salary at the same time as tax and National Insurance via the pay as you earn system (PAYE). Your payslips will show how much has been deducted. You should check your employer has you on the correct re-payment plan. You start repaying when your income is more than the threshold for your plan.
- If you’re self-employed – HM Revenue and Customs (HMRC) will work out how much you pay from your tax return. You pay at the same time as you pay your tax.
- If you leave the UK for more than three months – You will need to tell the Student Loans Company so that they can calculate if you will be required to make repayments whilst out of the country
What can you do to help manage your finances whilst repaying your loan:
- Understand the terms of the loan: It is important to understand the terms of the loan, including the interest rate, repayment period, and monthly payment amount. This information can be found on your loan agreement or by contacting the Student Loans Company
- Create a budget: A budget can help you manage your finances and ensure that you have enough money to make your loan payments. The budget should include all income and expenses, including rent, utilities, food, transportation, and entertainment.
- Visit the Blackbullion site for more information and advice on how to manage your repayments and take a look at their loan repayment estimator Blackbullion