So you’ve finished your studies and are wondering how you’re going to pay your bills. There are many things you can do to put your mind at ease, such as using an online Student Loan Calculator. Keep in mind that student debt is not the same as regular debt. So, don’t worry; this guide will teach you all you need to know about Student Loan Repayment.
Check Your Plan
There are 4 plans for student loan repayment. You should double-check that you’re on the right one. Here are the summaries of the plans:
Plan 1
If you’re on Plan 1, you’re a:
- English or Welsh student who began an undergraduate course anywhere in the UK before 1 September 2012
- Northern Irish student who began an undergraduate or postgraduate programme in the UK on or after 1 September 1998
- EU student who began an undergraduate degree in England or Wales on or after September 1, 1998, but before September 1, 2012. an EU student who began an undergraduate or postgraduate study in Northern Ireland on or after September 1, 1998, but before September 1, 2012.
Plan 2
If you’re on Plan 2, you’re a:
- English or Welsh student who began an undergraduate study anywhere in the UK on or after September 1, 2012
- EU student who began an undergraduate course in England or Wales on or after September 1, 2012; and anybody who took up an Advanced Learner Loan on or after August 1, 2013.
Plan 4
If you’re on Plan 4, you’re a:
- Scottish student who began an undergraduate or postgraduate programme in the United Kingdom on or after September 1, 1998
- EU student who began an undergraduate or postgraduate course in Scotland on or after September 1, 1998.
Postgraduate Loan
If you are on a repayment plan for a Postgraduate Loan, you are:
- English or Welsh student who received a Postgraduate Master’s Loan on or after August 1, 2016
- English or Welsh student who received a Postgraduate Doctoral Loan on or after August 1, 2018, an EU student who began a postgraduate study on or after August 1, 2016
Student Loan Repayment
You will begin repaying your loan after you graduate, depending on your salary. This will be automatically deducted from your take home pay. How much you payback is based on the plan you’re on.
Plan 1:
You repay if your income exceeds £382 a week, £1,657 a month or £19,895 per year (before tax and other deductions).
Plan 2:
You repay if your income exceeds £524 a week, £2,274 a month or £27,295 per year (before tax and other deductions).
Plan 4:
You repay if your income exceeds £480 a week, £2,083 a month or £25,000 per year (before tax and other deductions).
Postgraduate Loan
If you took out a Master’s Loan or a Doctoral Loan, you repay if your income exceeds £403 a week, £1,750 a month or £21,000 per year (before tax and other deductions).
You can pay off your loan all at once. However, you must first confirm that you have the appropriate funds before contacting the Student Loans Company. Remember that the whole debt is also cancelled after around 30 years and will not influence your credit score, which distinguishes it from most other types of debt, so you do not need to be in a hurry to pay it back.
Use A Student Loan Calculator
See how much you will repay here.
If you are from Scotland, Wales, or Northern Ireland, you cannot use this Student Loan Calculator.
We hope this information has answered any questions you may have about student loan payments. If you have any more inquires, please contact your university or:
Student Finance England at 0300 100 0607
EU Students contact Student Finance Services at 0141 243 3570
Postgraduate Loans contact 0300 100 0031.
You can read more about Student Loans here.
