Rates and Repayments

When applying for a 19+ Advanced Learning Loan, there is no credit check and household income isn't taken into account — with loan repayments only beginning once you're earning £21,000 a year.

You only pay back 9% of any earnings over the £21,000 and the repayments are taken directly from your wage through the tax system.

Earnings each year

Monthly income

Monthly repayment

Up to £21,000

£1,750

£0

£22,000

£1,833

£7&

£25,000

£2,083

£30

£30,000

£2,500

£67

£35,000

£2,916

£105

£40,000

£3,333

£142


Visit the Student Finance England site to find more about repaying your loans- loan repayment


Interest

While you are completing your studies, interest on your loan will be based on inflation — specifically, the Retail Price Index (RPI), plus 3% of the total loan amount. Interest will continue to be added at this rate until the end of the tax year.

After this point, until you start earning more than £21,000 a year, only inflation will be used. Once you start earning more than £21,000 a year, it will revert back to inflation plus 3%.

Remember, if you need more advice you can always get free impartial advice from www.moneyadviceservice.org.uk.


How and when will I pay back the loan?

  • You’ll only start making repayments when your income is over £21,000 a year.
  • You’ll start repaying your loan in the April after you complete or leave your course.
  • You can make voluntary repayments at any time in order to pay off your loans faster.
  • If your income falls below £21,000, repayments will stop and only re-start when your income is over £21,000.
  • If you’re employed, your employer will take your repayments directly from your salary.