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Interest and repayment of loans

The student will be charged interest on their student loans from the first day the money is paid to them or their university or college until the loan is repaid in full or cancelled.

You can find out what the current interest rates are and how they are determined at

When does repayment start?

The student becomes eligible to start repaying their loans in the April after they have finished or left their course. For example, if a student starts a 3 year course in 2021/22 and completes the course, they’re eligible to start repaying in April 2025.

How do they repay?

HM Revenue & Customs (HMRC) will collect repayments from their salary, along with income tax and National Insurance, through Pay As You Earn (PAYE).

If they are self-employed, HMRC will collect repayments through the tax self-assessment system.

They can also make voluntary repayments at any time.

Do you have any liability for repayment?

The student is the only person with any liability for repaying their student loan. As the parent or partner of a student you may need to supply financial information to ensure the student gets all that they’re entitled to, but this doesn’t make you liable for any of the resulting debt.

This remains the case even if:

  • the student withdraws from their course before completing it
  • their earnings don’t reach the required amount for repayments to begin
  • the student dies while still owing money to Student Loans Company

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