Students will have to repay any loans they borrow, but not until the April after they finish or leave their course, or the April four years after the start of their course – whichever comes first – and, only then, if their income is over the repayment threshold.
How much they repay each month depends on their income, not how much they borrowed.
They’ll repay 9% of their income over the repayment threshold, which is currently £25,000 a year, £2,083 a month or £480 a week.
If their income drops below the threshold, their repayments will stop automatically.
They will be charged interest from the day we make their first student finance payment until their loan has been repaid in full or cancelled. The interest rate is based on the UK Retail Price Index (RPI) and will vary depending on their circumstances.