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  Repaying Student Loans

Once you have completed your studies at Edinburgh Napier University, you will start to think how you will pay back your student loan.  The process is very simple, the SLC (Student Loans Company) will work with Her Majesty’s Revenue and Customs (HMRC) to collect repayments.  You do not start to repay your student loan until the April after you graduate.  The amount repaid depends on how much you earn, which part of the UK you are from and when you started your course.

Scottish and Northern Irish Students

Students from Scotland and Northern Ireland who started their course after September 1998 repay their student loan on the Plan 1 repayment scheme.  Details on can be found below.

English and Welsh Students

Students from England and Wales who started their course before 1st September 2012 are on plan 1.  Student who started their course on the 1st of September 2012 or later are on plan 2. Details can be found below.

Repayment plans

So now you know which repayment scheme you are on you can start to work out how much you will pay back. For both repayments plans you only start paying back you student loan once you go over a certain threshold, if you fall below the threshold then you do not pay anything.

Plan 1

On Plan 1 you only start to pay back your loan after you start to earn over £17,495, and you only pay 9% over the income threshold.

​Annual income before tax ​Monthly income ​Monthly repayment
​up to £17, 495 ​£1,457 ​£0
​£18,500 ​£1,541 ​£7
​£21,000 ​£1,750 ​£26
​£24,000 ​£2,000 ​£48
​£27,000 ​£2,250 ​£71
​£30,000 ​£2,500 ​£93

 

Plan 2

On Plan 2 you only start to pay back your loan after you start to earn over £21,000 and you only pay back 9% over the income threshold.

 

​Annual income before tax ​Monthly income ​Monthly repayments
​up to £21,000 ​Up to £1,750 ​£0
£22,000​ ​​£1,833 ​£7
£25,000​ ​£2,083 ​£30
​£30,000 ​£2,500 ​£67
​£35,000 ​£2,916 ​£105

 

So how is this calculated?

We know the yearly threshold is £17,495 before tax, the monthly threshold for this is £1,457 before tax.  So this mean you only pay back 9% on any earnings over £1,457 per month, for example, if you earned £1,750 per month you only pay back 9% on the difference between £1,457 and £1,750.

  • £1,750 - £1,457 = £293
  • 9% of £293 = £26.36

So you would only pay per month £26.36 on a yearly salary of £21,000

For Plan 2 on a salary of £21,000 you would not pay anything back per month, but once you go over £21,000 you will pay 9% on any earnings over this. If you earned £25,000 your monthly income would be £2,083.  So you would only pay back the difference between £1,750 and £2,083.

  • £2,083 - £1,750 = £333
  • 9% of £333 = £30

For more information please visit the Student Loan Repayment.

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