Repaying the student loan
If you take out a student loan for your living costs, you will have to start to pay this back the April after you graduate or leave your course. The amount you pay back depends on what you earn. The Student Loans Company (SLC) work with the HM Revenue and Customs (HMRC) to collect payments. This means that your employer will take your repayments straight from your salary. Or if you are self employed, the HMRC will collect payments through the self assessment process. The SLC expect you to repay 9% of your annual income over £15,000 a year. You can make extra voluntary payments straight to the SLC to reduce your loan quicker.
| Your gross income each year | Monthly repayment | Repayment as a percentage of your income |
|---|---|---|
| Up to £15,000 | 0 | 0 |
| £16,000 | £7 | 0.6 |
| £17,000 | £15 | 1.1 |
| £18,000 | £22 | 1.5 |
| £19,000 | £30 | 1.9 |
| £20,000 | £37 | 2.3 |
| £25,000 | £75 | 3.6 |
| £30,000 | £112 | 4.5 |
| £35,000 | £150 | 5.1 |