Repayment of Postgraduate Loan

You must repay your Postgraduate Loan in line with the regulations at the time you enter repayment.

When you take out your Postgraduate Loan the repayment terms will be based on current regulations. This is expected to change when new legislation is passed by the UK Parliament. This means when you enter repayment the terms might be different. It’s your responsibility to check back and make sure you have the most up-to-date information.

The following repayment information covers both the current repayment terms and the expected repayment regulations.

When repayments will start

You have to repay any loan you borrow, including the interest charged, but not until you’ve finished or left your course and your income is over the repayment threshold which is currently, £21,000 per year, £1,750 a month, or £404 a week, before tax and National Insurance.

You’ll be due to start making repayments the April after you finish or leave your course.

If you leave your course early you may need to repay any overpaid amount. The amount of loan which is overpaid will be exempt from the earning threshold and will be due as soon as possible.

Once your income is over the repayment threshold, you’ll repay 9% of your income above this.

How to work out your monthly repayment amount

Take away £21,000 from your annual salary before tax and National Insurance
Work out 9% of the remainder
Divide that figure by 12
Round down to the nearest pound

For example, if you were earning £30,000 per year:
30,000 – 21,000 = 9,000
9% of 9,000 = 810
810 / 12 = 67.5
Round down
So your monthly student loan repayment would be £67

The following table shows how much you’ll repay towards your Postgraduate Loan depending on your income.

Annual income (before tax)

Monthly salary

Monthly repayment

Up to £21,000

Up to £1,750

£0

£22,000

£1,833

£7

£23,500

£1,958

£18

£25,000

£2,083

£29

£27,000

£2,250

£45

£30,000

£2,500

£67

Interest

You’ll be charged interest from the day we make the first payment to you until the loan is repaid in full or cancelled. The interest rate is based on the UK Retail Price Index (RPI) and will vary depending on your circumstances. The interest rate is updated once a year in September, using the RPI from March of that year.

If you already have a student loan

If you’ve had any other student loans, how much you repay will depend on when you started your undergraduate course.

If you started your undergraduate course onor after 1 September 2012 (Plan 2)

You’ll repay 9% of your income over £21,000 towards the student loans you borrowed for your undergraduate course and your Postgraduate Loan. This means you’ll repay 9% of your income over £21,000 in total.

Annual income (before tax)

Monthly salary

Monthly repayment

Up to £21,000

Up to £1,750

£0

£22,000

£1,833

£7

£23,500

£1,958

£18

£25,000

£2,083

£29

£27,000

£2,250

£45

£30,000

£2,500

£67

If you started your undergraduate course between 1 September 1998 and 1 September 2012 (Plan 1)

If your income is between £17,775 and £21,000 a year you will repay 9% of your income towards the loans you borrowed for your undergraduate course.

If your income is more than £21,000 a year you will repay 9% of your income, and it will be spread across the loans you borrowed for your undergraduate course and Postgraduate Loan.

The following table below shows how repayments are applied to each loan when you’re repaying both an undergraduate and Postgraduate Loan.

Annual income (before tax)

Monthly repayment to your undergraduate loan

Monthly repayment to your Postgraduate Loan

Total monthly repayment

Up to £17,775

£0

£0

£0

£18,000

£1

£0

£1

£21,000

£24

£0

£24

£25,000

£24

£30

£54

£32,000

£24

£82

£106

If you started your course before 1 September 1998

You’ll continue to repay or defer the loans you borrowed for your undergraduate course and you’ll repay 9% of your income over £21,000 towards your Postgraduate Loan.

You can’t defer your Postgraduate Loan - repayments will stop automatically when your income is below the repayment threshold.

What will I repay once the new legislation has been passed?

You’ll repay 6%, instead of 9%, of your income over the repayment threshold towards your Postgraduate Loan. But you won’t have to make any repayments before April 2019.

If your income is below the repayment threshold, you won’t have to make any repayments.

You’re charged interest from the day the first payment is made to you until your loan is repaid in full or cancelled. The interest rate is based on the UK Retail Price Index (RPI) plus three percent.

If you already have a student loan

If you’ve had any other student loans, you’ll repay these at the same time. How much you repay will depend on when you started your undergraduate course.

If you started your undergraduate course on or after 1 September 2012 (Plan 2)

You’ll repay 9% of your income over £21,000 towards the student loans you borrowed for your undergraduate course and 6% of your income over £21,000 towards your Postgraduate Loan. This means you’ll repay 15% of your income over £21,000 in total.

If you started your undergraduate course between 1 September 1998 and 1 September 2012 (Plan 1)

You’ll repay 9% of your income over the repayment threshold, which is currently £17,775, towards the student loan you borrowed for your undergraduate course and 6% of your income over £21,000 towards your Postgraduate Loan.

If you started your course before 1 September 1998

You’ll continue to repay or defer the loans you borrowed for your undergraduate course and you’ll repay 6% of your income over £21,000 towards your Postgraduate Loan.

You can’t defer your Postgraduate Loan - repayments will stop automatically when your income is below the repayment threshold.



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