Managing your student loan repayments

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Going to University can help you reach your dream career, but it comes at a cost. At the end of your course you will have a degree, but in most cases you will also have a student loan left to repay. It is important to know how this will impact you financially, so that you can manage your money effectively. Here’s some typical questions you might have:

There are different repayment plans depending on when you started your University course and which student finance agency provided your student loans. These plans determine when you start repaying your loan, so it is important for you to find out which repayment plan you are on. To do this, visit the Government website here.

Repayments are taken directly from your salary once you earn above the threshold. The threshold depends on which repayment plan you are on.

Repayments are taken each pay period, so whenever you are paid by your employer, or whenever you are paid as a self-employed worker.

Repayments are taken in a similar way to tax, so once you earn above the threshold the repayments are done for you. However, you are able to make voluntary additional repayments of at least £5 at any time. This will not reduce the total amount you have to repay, but it will help you to repay your loan faster.

Repayments are done for you in the background every time you get paid, if you earn above the threshold. If you are paid a similar amount every month you will also likely be paying a similar amount as repayments every month.

It is a good idea to include student loan repayments in any monthly budget planning you currently undertake. By doing this, you can account for any repayments you will have to make and ensure you leave enough money from your regular pay cheque to satisfy this monthly cost.

Why not get started with our free  budget planning tool to see where your money goes and how best to utilise it?

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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