How to Work Out Your Student Loan Repayments

By Phil Davis

Part of Student Finance For Dummies Cheat Sheet

No matter what your income is when you graduate, you can always work out how much your repayments will be to the Student Loans Company.

One simple formula applies, regardless of how much you earn. This is it:

(Your Income Before Tax – Repayment Threshold ) x 9% = Annual repayment

Annual repayment / 12 = Monthly Repayment

For all courses starting on or after 1st September 2012, the current Repayment Threshold is £21,000.

Note that how much you repay is always determined by how much you earn, not how much you owe.