Once you start earning a certain amount of money, your student loans are repaid automatically through the tax system.
Deductions should stop once you’ve paid off your student loan. If they haven’t stopped and you think you’ve overpaid, get in touch with the Student Loans Company for a refund.
Interest will be charged on the outstanding debt, but you only have to make repayments once you begin earning enough.
As a graduate, you don’t have to start paying back your student loan until:
- the April after you leave your course, or
- the April 4 years after the course started, if you’re studying part-time.
It might be even longer if you're out of work or don’t earn above the minimum earning threshold which changes each year. If something unexpected happens, such as losing your job, your repayments will stop until your income reaches the threshold again.
Unlike other debts, your repayments are in line with your income, and if your pay drops below the threshold your repayments will stop. This is why you shouldn’t prioritise paying your student loan over your overdraft or credit cards.
Student loans do not go on credit files, but if you're getting a big loan like a mortgage the company might ask if you have one so they can take that into account.