Myths and facts about student loan repayment


We know a lot of parents are concerned about how and when their child will repay their student loan, so we’re here to explain some of the myths and facts about student loan repayment. Student loan repayments don’t depend on
how much your child borrows – how much they repay each month depends entirely on their
income after they graduate. If they don’t earn over the repayment threshold
of £25,000 a year, £2,083 a month or £480 a week, they won’t have to repay. If they do earn over the repayment threshold, they’ll repay 9% of anything they earn over £25,000. For example, if their income was £27,000 a year, they would repay approximately £15
per month. It doesn’t matter how much they borrowed
– £30,000, £40,000 or £50,000, the amount they repay would stay the same. Student loan repayments won’t last forever.
They’re cancelled 30 years after your child becomes eligible to repay – even if they
haven’t repaid a penny. Their debt can’t be passed to anyone else. Student loans don’t go on credit files and
won’t affect their credit rating. This is a common myth amongst students, but
interest is charged on student loans from the day we make the first payment into their
bank account or to their university or college, until the loan is repaid in full or cancelled. For more information about student loan repayment,
visit www.slc.co.uk/repayment

Paul Whisler

Leave a Reply

Your email address will not be published. Required fields are marked *