Repaying Your Student Loan if you come from Northern Ireland
The student loan is not like a commercial loan. What you repay and when is based on your earnings.
|You will be eligible to start repaying your loan in the April after you have finished or left your course.|
- When you earn more than the minimum income threshold (£16,365 a year in 2013) you will repay 9% of anything over this amount. If your income is below £16,365 or drops below that amount, you will not have to make repayments.
- Your loan repayment will be collected through the PAYE system if you are employed, so an amount will be deducted from your gross pay in the same way as it is for your income tax payments. The calculation is made by the Student Loans Company in conjunction with HM Revenue and Customs.
- If you are self-employed repayments will be collected through the tax self-assessment system.
- If you intend to leave the country to work abroad you must inform the Student Loans Company who will arrange to collect repayments directly from you.
- The Student Loans Company will send you an annual statement showing how much you have repaid in the tax year. You can find out how much you owe by logging on to the Student Loan Company, where you can also find information about making a payment as well as accessing your current balance.
- You will be charged interest on your loan from when you receive your first payment until the loan is repaid in full.
- Student loans attract interest. Interest rates for student loans in 2013 will be 1.5% (Bank of England base rate plus 1%).
- You will continue to repay your loan until you have paid off the full amount (see below for exceptions).
|The length of time it takes to repay your student loan will depend on your income and the amount you borrowed.|
- Your loan will be cancelled if you become disabled and are registered as permanently unfit for any work, or if you die.
- Any amount still owing 30 years after you commenced repayments will be cancelled.
- Remember, you can pay back all or some of your loan at any time without incurring an early repayment charge.
- If you leave your course early, you will have to repay any loans and grants you received but were not entitled to.
- In these circumstances, it is important that you contact your university/college and inform Student Finance NI. You can also contact the Student Loans Company on 0845 073 8889.
|Check out our Student Loan Repayment Calculator for an idea of how much you will pay overall for your university course, and how long it may take you to pay it off.|