The good news is that with a student loan, you don’t pay your tuition fees, the government does.
They pay the money direct to the college or university, as a government grant that you’ll
eventually have to start paying back when you’re earning in the region of ¬£25,000 per year.*
You can find out if you are eligible for a student loan by visiting
Student loans: KEY FACTS
1. You can apply for loans to cover just tuition fees only, or tuition fees and living costs.
2. Student loans are different to other forms of finance because your student loan is not
included on your credit file, so it will not affect your credit rating.
3. Repayments are automatically deducted from your pay slips when you start earning over the
4. The interest rate on loans is set by the government, it is currently between 3.1%
and 6.1% APR dependent on your circumstances.**
5. If loans have not been paid off after a certain period (currently 30 years) they are written off, meaning you are no longer liable for the debt and not required to make further payments. In future loans may be written off earlier, depending on government policy.
How do student loan repayments work?
From 6 April 2018 the repayment threshold is expected to increase to ¬£25,000 a year, ¬£2,083 a month or ¬£480 a week. Repayment amounts will be 9% of any income above the new repayment threshold – for example:*
|You can apply for loans to cover your annual
income before tax
|Predicted monthly repayment amount based on a repayment
threshold of ¬£25,000 per annum
*Source: www.slc.co.uk. **Source: www.slc.co.uk/students-and-customers/loan-repayment/
The information above is correct to the best of our knowledge at the time of publication but is subject to future changes in government policy. At the time of publication (February 2018), the repayment threshold is ¬£21,000 per year and is expected to change to ¬£25,000 per year from 6 April 2018, but the government has not yet confirmed this. The information above is for illustrative purposes only and is not intended as financial advice. For all the latest up-to-date information, visit www.gov.uk/student-finance or contact the college’s student services team on 01952 642237.