Paying it back
Your tuition and maintenance loans are added together so you make one monthly payment. Your monthly payments are based on 9% of whatever you earn above £25,000.
Your payments are based on what you earn, not what you owe. If your wages drop, this is reflected in your repayments. After 30 years, anything you haven’t paid back is written off.
Your payments don't come out of your bank account. They are deducted from your salary automatically, in the same way that income tax is. If you're self-employed, you'll pay through HM Revenue and Customs.
What about interest?
Interest is applied at the rate of inflation + 3% up until the April after you graduate. After that, if you are earning less than £25,000 a year, interest is applied at the rate of inflation.
If you are earning between £25,000 and £45,000 a year, interest is applied at somewhere between inflation and inflation + 3%, depending on exactly how much you earn.
When you are earning over £45,000 a year, interest is applied at inflation + 3%.
What if I lose my job or take a career break?
If your salary falls below £25,000, your payments automatically stop. Payments don't start again until you're earning over £25,000. This applies even if you decide to take a pay cut voluntarily.
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