Student Loan 2006

Student Loan 2006

THIS ISN'T AS hard as it sounds. Your student loan for maintenance and student loan for fees (if you take this element) will be combined together and you don’t have to start paying anything back until the April after you have left your course.

Even then, you only start repaying them when you earn more than £15,000 a year and then at a rate linked to your income. That means the more you earn, the more you pay back; the less you earn, the less you pay back. And if you stop working, or you do not earn over £15,000 then you do not pay back a penny. They also only attract an interest rate linked to inflation. So what you repay will be broadly the same, in real terms, as what you borrowed.

Repayments will usually be made automatically through the tax system. You will repay a percentage of your income above £15,000. This percentage is currently set at 9%. So someone earning £20,000 a year will only have to repay £8.65 a week, or someone earning £25,000 a year will only have to repay £17.30 a week.

Don’t forget for students starting their course in September 2006 (with exception of those who took a gap year in 2005) or later, the Government will write off any of your student loan balances which are left unpaid 25 years after you finished your course.

Your LEA will send you more details about the terms and conditions of student loans when you apply for financial help. Take some time to read these so that you understand your responsibilities – you can get a copy of the Terms and Conditions guide from the Student Support website, by calling 0800 731 9133 or from your Local Education Authority.

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