Repaying Your Student Loan if you come from Wales

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

• When you earn more than £21,000 a year you will repay 9% of anything over this amount. If your income is below £21,000 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 rates for student loans in 2013 are:
  
  • for students currently studying, the level of inflation plus 3%;
  • for graduates and those who have left their course on incomes below £21,000, the level of inflation;
  • for graduates and those who have left their course on incomes between £21,000 and £41,000, inflation plus 2%–3%;
  • for graduates and those who have left their course on incomes above £41,000, inflation plus 3%.
• Interest will be added for the lifetime of the loan, starting from the day the money is sent to you.
• 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 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 Wales.  You can also contact the Student Loans Company on 0845 073 8889.
• Note that a partial cancellation of maintenance loans taken out from Student Finance Wales will be available in 2012–13. Eligibility will be automatic subject to certain conditions. This cancellation does not apply to tuition fee loans.

Useful links

• Student Finance Wales
• Student Loan Company

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