The maximum you can earn before you start paying back your student loan depends when your course started:
- English and Welsh students who started before 1 September 2012 and all Scottish and Northern Irish students start repaying when you earn over £17,495. This amount increases on 6 April every year.
- English and Welsh students who started on or after 1 September 2012 start repaying when you earn over £21,000. These amounts are assessed over your pay period, and if your weekly or monthly pay exceeds the weekly or monthly limit, you pay back 9% of the excess.
For £17,495 a year, the earnings threshold is £336 a week or £1,457 a month.
For £21,000 a year, the earnings threshold £403 a week or £1,750 a month.
How to Report:
Repayments are automatically taken out of your pay packet so you do not need to inform the Student Loan Company if your income changes.
If you started your course before 1 September 2012 and normally earn £15,000 a year (£1,250 per month) you will not normally pay anything back.
If in June you receive a bonus of £1,000 so your earnings that month are £2,250 you will be required to make a repayment.
Your loan repayment in June will be £2,250 – monthly limit of £1,457 = £793 x 9% = £71.37
Even though your total income for the year is £16,000, which is less than the annual threshold, you will still need to make the repayment in the month you receive the bonus. If you have earned less than the earnings threshold in any one tax year and have made a repayment, you will be able to apply for a refund.
Further information can be found from the Student Loan Company at: www.studentloanrepayment.co.uk/portal