Repaying your loan

Film description: Find out more about what, when and how to repay your student loan.

You don’t have to repay your loan until you’ve finished or left your course and your income is over the UK repayment threshold, which is currently £25,725 a year, £2,143 a month or £494 pounds a week.

The amount you repay each month is based on your income, not how much you borrowed!

Here’s how you’ll repay your student loan:

If you’re a full-time student, you’ll be due to start repaying your loan the April after you finish or leave your course. If you’re a part-time student, you’ll be due to start repaying the April four years after the start of your course or the April after you finish or leave your course, whichever comes first.

You’ll repay 9% of your income over the repayment threshold.

If your income changes, either rising or falling, your repayment amounts will change to reflect this. If you stop working, your repayments will stop until you start working again and your income is over the threshold.

If you’re employed, your employer will take your repayments directly from your salary along with tax and National Insurance.

If you’re self employed, you’ll make repayments directly to HM Revenue and Customs, or HMRC, at the same time you pay tax.

If you go overseas, you’ll have to repay your loan directly to us – so make sure you let us know before you go.

You can also make voluntary repayments at any time.

After the end of the tax year, HMRC tell us how much you’ve repaid and we’ll send you a statement showing your repayments and any interest added to your account.

You‘re charged interest from the day your first payment is made until your loan is repaid in full or cancelled. The interest rate is based on the UK Retail Price Index, or RPI, and will vary depending on your circumstances.

And don’t forget, once you’ve started repaying you might be able to get up to £1,500 of your Maintenance Loan balance cancelled by the Welsh Government.

On screen: For helpful tools and guides visit: the Student Finance Wales website, the SFW Facebook account, the SFW Twitter account, the SFW YouTube channel.

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