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
|Up to £21,000
Visit the Student Finance England site to find more about repaying your loans- LOAN REPAYMENT
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.