National Student Finance Information

Did you know ... you don't repay any of your loan until you start earning £21,000?

And if your earnings drop below £21,000 – you stop paying. This £21,000 threshold will rise in line with average earnings. You pay back 9% of your salary over £21,000.

So, you earn £22,000 – you pay back £7.50 per month or £90 per year. You earn £30,000 – you pay back £67.50 per month (£810 per year).

You also pay interest on your loan from when you take it out. This is set at inflation + 3% while you are studying. It then depends on how much you are earning. Earn over £41,000 and this interest rate stays. Earn below and it drops.

After thirty years any remaining loan is wiped. It doesn’t matter how much you still owe – it could be £1, it could be £20,000, most students will never pay all their loan back.

Studies suggest that you would need to be on a starting salary after graduation of around £40,000 to pay everything back! Use this finance calculator to see how much you might have to pay back.

Think of what you will owe as a tax rather than a loan. Why?
It will be repaid through the income tax system,
You only repay if you earn the money,
The amount you repay increases with your earnings,
It doesn’t go on your credit files

Most of you will be repaying for most of your working life, so it isn’t like a normal loan…

Whether you decide to go to university or not is your decision. We know it’s not for everybody, and the cost of going may play a large part in your decision. But, please make sure you base your decisions on the FACTS, and not on misinformation.

This is the last of the daily updates but, for more information, click on the link to see that ‘you can afford to go to uni’

Further information is available at: