BBC reported that 1.8 million people are now in debt of over £50,000 due to student finance. For most this is the only way for a further education and a necessity for career paths. It is important that once you have graduated you keep an eye on your loan to make sure the repayments happen at the correct time so that you are not losing out on money.

The earliest you will begin paying your loan back is the April after you finish your studies if you took part in a full time course. If you completed a part time or a postgraduate doctoral course longer than 4 years you won’t start repaying until 4 years after you finish. This gives graduates time to be in full time work after their courses end.

You shouldn’t worry too much about repayments as these only happen once you reach the threshold specific to your type of loan, the lowest threshold is £24,990 annual income.


Do I have to set up the repayments?

Once you reach the threshold the money will taken from your bank directly.

This is another reason you need to check your account in case of any errors from the student loans company.

You can choose to start paying early, making voluntary payments but make sure your financial situation is secure before doing this as you won’t be given a refund on these.


What is the interest rate?

The interest rate on student loans is between 6.25% and 7.9%.

This increases your repayment amount each year.


What if I have overpaid?

When you begin paying student loan you should meet all of the criteria above including you annual salary being above the threshold. If you have made payments before meeting the criteria then get in contact with the student loans company to claim a refund on this.

This often happens if your monthly income meets the threshold due to varying shift work, commission or bonuses despite this not continuing throughout the year.


What if I have been overpaid?

Unfortunately, the system is not smooth sailing and this is where students come into problems with the student loan company. During your studies it is best to keep a close eye on your student loans, make sure the amount you are owed adds up to what comes into your bank account and that they have your loan amount correct too.

If the loans company pays you too much during your studies, you will have to pay this back. This is why checking at the time ensures this won't be a bigger problem later on. They will eventually notify you that you now owe them this money back which you can pay off in one or set up a payment plan. To avoid paying this once you have left university and potentially have other financial responsibilities, stay on top of your loan.