Repayment of Student Loans

Repayment of Student Loans


Tuition Fee and Maintenance Loans are repaid after you leave university and start earning at least £25,725 pa plus RPI %.

Interest is added to Tuition Fee Loans from when they are paid to the University (they are paid in three instalments a year; October, January and April) and to Maintenance Loans from when they are first paid to the student.      

Rates of Interest    

Interest on your loan will be applied at inflation (RPI – Retail Price Index) plus 3% while you are studying, and up until the April after you leave university or college. Then the amount of interest you’re charged depends on how much you earn. You will be charged the following rates of interest:

• If you earn less than £25,725 – interest at the rate of inflation

• If you earn between £25,725 and £46,305 – interest at the rate of inflation plus up to three per cent (on a gradual scale depending on income)

• If you earn over £46,305 – interest at the rate of inflation plus three per cent


Repayment is based on 9% of any income over £25,725 plus RPI%.  Student loan balances, but not arrears, will be written off after 30 years if the student in question started their studies after September 2012. 

More information regarding the repayment of Student Loans is shown on the Student Finance England website - click on link to left of this page. 

Examples of salary and associated repayments are shown below.

Income each Year
before Tax 

Monthly Salary  Approximate
Monthly Repayment 
 £25,725  £2,143  £0
 £27,000  £2,250  £9
 £29,500  £2,458  £28
 £31,000  £2,583  £39
 £33,000  £2,750  £54