If your income drops below £21,000 (or £1,750 a month) then repayments will stop.
If you’re an employee then your employer will calculate your repayments and take it out of your earnings along with your tax and National Insurance payments each month.
If you’re self-employed you have to work out your own repayments in the same way you would have to work out your tax and National Insurance payments.
How Much Interest Will I Pay on My Loans? You’re charged interest on your loan from the time your first payment is made until you pay back your loan in full. The interest rate charged depends on the Retail Price Index (RPI).
While you’re studying the interest rate on your loan will be RPI plus 3%. Once you leave university or college, the interest rate will change. • If your income is £21,000 or less, then the interest rate is equal to RPI.
• If your income is between £21,001 and £41,000, the interest rate will vary between the RPI and RPI plus 3%, depending on your income.
• If your income is above £41,000, the interest rate will be RPI plus 3%.
NB: The advice in this article is specific to students who will be starting at university or college in autumn 2013 and will be getting their funding from Student Finance England. For more information, visit The Student Room’s Student Finance Zone
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