Each arrange features a limit for the regular or income that is monthly. You repay:
- 9% of this quantity you get on the limit for methods 1, 2 and 4
- 6% of this quantity you get within the limit for the Postgraduate Loan
That you don’t spend such a thing back once again in case your money try underneath the limit.
Interest begins being put into their loan from the time you can get your first payment.
Arrange 1
The thresholds is ВЈ382 an or ВЈ1,657 a month (before tax and other deductions) week.
Instance
You’re compensated month-to-month as well as your money modifications every month. This thirty days your earnings ended up being £2,000, which can be throughout the Plan 1 threshold that is monthly of.
Your earnings had been ВЈ343 within the limit (ВЈ2,000 minus ВЈ1,657). You can expect to repay ВЈ31 (9% of ВЈ343) this thirty days.
Instance
Their yearly money was £27,000 and you’re compensated a typical month-to-month wage. Which means that each your income is £2,250 (£27,000 divided by 12) month. This really is within the Arrange 1 month-to-month limit of £1,657.
Your earnings are ВЈ593 on the threshold (ВЈ2,250 minus ВЈ1,657). You are going to repay ВЈ53 (9% of ВЈ593) every month.
Interest on Arrange 1
Your presently spend interest of 1.25percent on Arrange 1. You will find down the way the interest percentage is calculated and interest levels for earlier ages. Continue reading “Repaying their education loan. Just how much you repay depends upon which plan you’re on”