In this section
External Links
North Walsham Centre
Do you live in North Norfolk? If you do, why not visit our Connexions Centre at North Walsham. You could use the computers there, look through our information library or talk to a Personal Adviser.
Repaying the loan
Repayments are due from the April after you leave your course (which is the start of the new financial year). You have to repay 9% of your earnings over £15,000.
So someone earning £18,000 a year will pay back 9% of £3,000 (£18,000 - £15,000), which works out at about £5.19 a week.
The more you earn, the faster you repay the loan. You can repay more than this if you wish.
Outstanding loans are written off:
- when you reach 65 (if the loan was taken out before September 2006), or
- after 25 years (if the loan was taken out for the first time in September 2006 or later).
Interest rates
Student loans accrue interest from the date they are paid.
The interest rate applies from 1 September to 31 August each year and is linked to the rate of inflation in line with the Retail Prices Index. This means that the amount you pay back will have roughly the same value as the amount you borrowed.
All student loans accrue interest from the date they have been paid, and interest accrues on your loan until it has been repaid in full.
The interest rate for 2007/2008 is 4.8%.
