Paying off your student loan | NatWest

Paying off your student loan

Helping you ease the burden of your student loan

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Student Loan FAQs

 

When will I need to start repaying my student loan?

After leaving university, you'll only start repaying your student loan once you're earning approximately £21,000 a year (£1750 a month).

 

From then on your repayments are fixed at 9% of everything you earn above that threshold. For example, if you earn £30,000 a year you are £9000 over the threshold and will pay 9% on that £9000. Therefore your yearly repayment would be £810.

What happens if I never pay it all off?

If you never get a job earning over the £21000 threshold, you won't have to repay a penny.

 

After 30 years, any remaing debt will be written off. So, beginning on the April after graduation, you'll stop owing when the debt is clear or when 30 years have passed.

 

Will I be hassled for payments?

No. Your repayments are made through your company payroll and will be deducted in the same method as income tax.

 

If you leave the country or become unemployed, the student loan company may send you a letter asking for an update on your circumstances, but they are not chasing you for money.

Can I repay my loan early?

Yes. Although this is not recommended.

 

With your student loan debt being written off after 30 years, many might not eventually repay the amount they owe, so paying it all off in advance of that could in fact be wasting money. In general, people are encouraged to pay off their debts as quickly as possible, but with your student loan there's no rush.

Will my student loan affect my credit rating?

Student loans do not go on credit files.

 

Credit card and mortgage agencies may ask on application forms if you have a student loan, but it shouldn't be a factor in any transaction decision they make.

 

Student debt can impact a mortgage decision but only on the affordability checks that establish your ability to afford mortgage repayments. But as you'd be in a full time job to be paying back your student loan, it shouldn't be too detrimental.

I'm now a post-grad. Where do I stand with student loans?

From 1 August 2016, for the first time, new master's students will be able to apply for Student Loans Company loans of up to £10,000 to pay for their courses – these will then only need repaying if they earn enough once the course ends.

Tips for life after university

Here are some tips we've found on making the transition from student to graduate as seamless as possible.

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Taking a step back and looking at your finances could really help you to feel in control and stay on top of your spending. A free Financial Health Check with one of our Senior Personal Bankers is a great way to do that. They can go through your day-to-day spending and help you with ideas on how you can make your money work harder. 

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