Repaying Your Student Loan if you come from Scotland

 The student loan is not like a commercial loan. What you repay and when is based on your earnings. 

• 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.
• Student loans attract interest. Interest on the amount you owe will be linked to inflation.
• Interest will be added for the lifetime of the loan, starting from the day the money is sent to you.
• Student loans attract interest. In 2013, interest is 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).

• 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 35 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 SAAS.  You can also contact the Student Loans Company on 0845 073 8889.

Useful links

• Student Awards Agency for Scotland (SAAS)
• Student Loan Company

Next page: If you come from Northern Ireland