What do I need to pay back to the Student Loans Company?
After your course finishes, you’ll need to pay back tuition fee loans, maintenance loans andpostgraduateloans.
You do not need to pay back grants and bursaries unless you’ve been paid too much. If you’vebeen paidtoomuch, you’ll receive a notification of the amount you’ve been overpaid.
Even if you leave your course early or you don’t complete your degree, you will still have torepay yourstudentloan in full.
How much money do I owe?
If you’re unsure how much money you owe The Student Loans Company, you can use their Balance Calculator tosee how much you’ve spent.
You’ll need to have an account with the Student Loans Companyin order to do this.
When do I need to start repaying my student loan?
Repayments only start once you’ve started earning above a certain salary, and it also dependson whatkindof student loan you were given.
The Student Loans Company has a page which can help you find out which kind of loan youhave.There are two different loan repayment types, Plan 1 and Plan 2.
Plan 1 loans start being repaid once you earn over £18,330 a year.
Plan 2 loans start being repaid once you earn over £25,000 a year.
The earliest you’ll have to start repaying your student loan is April 6 on the year after yougraduatefromuniversity or college.
Can I pay off my student loan early?
Yes, you can – and you won’t incur a penalty for doing this. However, for young people juststarting tomaketheir way in life, paying your student loan offearly canhave risks.
By paying off your student loan faster, rather than saving, you may find yourself applyingfor loans orcredit cards if you need some extra money.
Student loan debt doesn't cost as much as commercial interest – even a mortgage costs a lot more overseveral years. If you think you’re likely to need to borrow money in the future, considerstarting tosavemoney now rather than speeding up student loan repayments, so you can say no to expensiveloans andcreditcards.
Can I make additional payments?
You can – however, remember that any other repayments you make are voluntary and won’treplace scheduledrepayments you already make.
Voluntary repayments can’t be refunded, so make sure that you can afford to make them beforeyoucommit.
You can make an additional payment using a debit card, a cheque or postal order, or aninternational banktransfer if you’re abroad.
Will my student loan ever be written off?
Writing off your student loan depends on the loan you have, and where you studied.
- If you started your studies in the UK before September 1, 2006, any debt is wiped whenyou reach65.
- If you started your course on or after September 1, 2006, and you have a Plan 1 loan,anyoutstanding debtis usually written off after 25 years. (However, the exception is Scotland, where theperiod beforethe loanis written off is 35 years.)
- If you have a Plan 2 loan, any outstanding balance is usually written off after 30years.
If you’re declared permanently unfit for work or permanently disabled, the Student LoanCompany willwriteoff your loan. It’ll also be written off if you die.
Can I pause my student loan repayments?
It’s unlikely that you can pause your student loan repayments – the money you owe is takendirectly fromyour salary pre-tax, so it’s as if you never had it to begin with.
We would advise that you speak to the Student Loans Company if you’re having issues withrepaying yourstudent loan – currently, the only way to stop making payments is to earn less than £18,330(if you haveaPlan 1 loan), or £25,000 (if you have a Plan 2 loan).
