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


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

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

  • 9% associated with quantity you get on the limit for Arrange 1 and 2
  • 6% associated with the quantity you get throughout the limit for the Postgraduate Loan
  • You may not spend any such thing right straight right back should your earnings is underneath the limit.

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

    Arrange 1

    The thresholds are £372 a week or £1,615 four weeks (before income tax and other deductions).

    Instance

    You’re paid month-to-month along with your earnings modifications every month. This thirty days your revenue had been £2,000, that will be throughout the Arrange 1 month-to-month limit of £1,615.

    Your revenue ended up being £385 within the threshold (£2,000 minus £1,615). You may repay £34 (9% of £385) this thirty days.

    Instance

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

    Your earnings is £635 on the threshold (£2,250 minus £1,615). You can expect to repay £57 (9% of £635) every month.

    Interest on Arrange 1

    You currently spend interest of 1.1per cent on Arrange 1. You’ll find down the way the interest rates are calculated and interest levels 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 earnings modifications every week. This week your revenue ended up being £600, which can be throughout the Arrange 2 regular limit of £511.

    Your earnings ended up being £89 on the threshold (£600 minus £511). You are going to spend straight straight straight back £8 (9% of £89) this week.

    Instance

    Your yearly income is £28,800 and you are clearly compensated a frequent wage that is monthly. Which means each thirty days your earnings is £2,400 (£28,800 split by 12). This can be throughout the Arrange 2 month-to-month limit of £2,214.

    Your revenue is £186 on the threshold (£2,400 minus £2,214). You may repay £16 (9% of £186) every month.

    Interest on Plan 2

    While you’re studying, interest is 5.6%.

    This is certainly 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 rate of interest is based on your earnings into the present taxation 12 months.

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

    If you’re a worker, your revenue will be your taxable pay:

  • plus any retirement contributions
  • minus any advantages you will get from your own company which can be taxed through payroll (pose a question to your boss if you’re not certain)
  • For those who payday loans in Nebraska have one or more work in per year, your interest is going to be centered on your income that is combined from your jobs.

    Instance

    You’ve got a Postgraduate Loan and an idea 2 loan.

    Your yearly income is £28,800 and you are clearly compensated a normal month-to-month wage. Which means that each your income is £2,400 (£28,800 divided by 12) month. This will be throughout the Postgraduate Loan month-to-month limit of £1,750 while the Plan 2 limit of £2,214.

    When you have Arrange 1 and Arrange 2 loans

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