Repaying your pupil loan. just how much you repay depends on which plan you’re on.

Each plan features a limit for the regular or month-to-month earnings. You repay:

9% for the quantity you make throughout the limit for Arrange 1 and 2

6% associated with the quantity you make throughout the limit for the Postgraduate Loan

You may not spend such a thing right back if the earnings is beneath the limit.

Interest begins being included with your loan from the time you can get very first re re payment.

Plan 1

The thresholds are £372 an or £1,615 a month (before tax and other deductions) week.

Instance

You’re paid month-to-month as well as your earnings modifications every month. This thirty days your earnings ended up being £2,000, which will be throughout the Arrange 1 month-to-month limit of £1,615.

Your earnings had been £385 throughout the limit (£2,000 minus £1,615). You can expect to repay £34 (9% of £385) this thirty days.

Instance

Your yearly income is £27,000 and you’re paid a typical wage that is monthly. Which means that each thirty days your earnings is £2,250 (£27,000 split by 12). This really is within the Arrange 1 month-to-month limit of £1,615.

Your revenue is £635 within the limit (£2,250 minus £1,615). You may repay £57 (9% of £635) every month.

Interest on Arrange 1

You currently pay interest of 1.1per cent on Arrange 1. You’ll find away the way the interest rates are calculated and rates of interest for past years.

Arrange 2

The thresholds are £511 an or £2,214 a month (before tax and other deductions) week. They change on 6 every year april.

Instance

You’re paid weekly along with your income modifications every week. This week your earnings ended up being £600 payday loans Maine, which will be within the Arrange 2 weekly limit of £511.

Your earnings had been £89 within the limit (£600 minus £511). You certainly will spend right right right back £8 (9% of £89) this week.

Instance

Your yearly income is £28,800 and you are clearly compensated a consistent month-to-month wage. Which means each thirty days your revenue is £2,400 (£28,800 split by 12). This might be within the Plan 2 month-to-month limit of £2,214.

Your earnings is £186 on the limit (£2,400 minus £2,214). You are going to repay £16 (9% of £186) every month.

Interest on Arrange 2

While you’re studying, interest is 5.6%.

That is comprised of the Retail Price Index (RPI ) plus 3%. RPI happens to be set at 2.6per cent.

This price is applicable before the 5 after you finish or leave your course, or for the first 4 years of your course if you’re studying part-time, unless the RPI changes april.

From then on, your interest depends upon your earnings when you look at the present income tax 12 months.

If you’re self-employed, your revenue may be the total earnings quantity in your Self-Assessment form.

If you’re a worker, your earnings can be your taxable pay:

plus any retirement efforts

minus any advantages you will get from your own manager which can be taxed through payroll (pose a question to your company if you’re maybe maybe perhaps not certain)

When you yourself have multiple task in per year, your rate of interest will likely be predicated on your blended income from all your jobs.

Example

A Postgraduate is had by you Loan and an agenda 2 loan.

Your yearly income is £28,800 and you’re compensated a frequent wage that is monthly. This means each your income is £2,400 (£28,800 divided by 12) month. This will be within the Postgraduate Loan threshold that is monthly of in addition to Arrange 2 limit of £2,214.

For those who have Arrange 1 and Arrange 2 loans

You repay 9% of one’s earnings on the Arrange 1 limit (£372 an or £1,615 a month) week.