When you apply to university, you may not think about the fees and repayments that are involved. But it is good to stay updated with any changes to loan repayments so that you can make informed financial decisions.
As of the 1st of August, students taking out a student loan will not be expected to start paying them back until the April after they leave the course.
If you started your course after the 1st of August, 2023, you will be on Plan 5 for repayments. Under Plan 5, the interest rate is set at RPI (Retail Prices Index). This means the amount you owe can increase over time, but only as much as the price of retail goods and services.
The good news is that what you pay is based on what you earn, not what you owe. Your employers will calculate and subtract student loan repayments from your salary. Therefore, you don’t need to worry about sending the money. You just need to ensure your employer has you on the correct payment plan. You can check your plan on the HMRC website.
If you need further guidance, please don’t hesitate to get in touch.
