You will normally start making repayments at the start of the tax year after you finish or leave your course. The tax year runs from 6 April to 5 April. The Student Loan Company will write to you before you start making repayments to tell you how the repayments will be collected.
However, no repayments will be collected before the April after you leave your course even if you have finished or left your course and your income is above £15,000 a year.
Money that you earn before the start date will not be taken into account when your repayments are worked out. You can pay off your loan more quickly by making extra repayments, even if you do not earn more than £15,000 a year. You can do this by sending a cheque to the SLC, quoting your reference number. If you want to, you can also make repayments before the start date for repayments in the April after you finish or leave your course. If you do choose to make extra repayments, it will not affect the amount of repayments you have to make through your employer or the Inland Revenue, because your income is more than the threshold. However, if you make extra repayments you will pay off your loan more quickly. Repaying your loan more quickly also means paying back less because of the interest added to the amount you owe. You cannot get a refund of any amounts you repay voluntarily, unless you have finished paying off your loan. When you near the end of your repayments, the SLC may contact you and ask whether you want to make a single one-off repayment to close your account. This may suit you better than continuing to have repayments deducted until you have repaid your loan. You will receive a refund, plus interest, if you repay more than you actually owed.
Full-time and part-time students who start their course after 1 September 2012 begin paying back their student loan once they earn more than £21,000 year.
For further infomration please call in or telephone your local CAB.
This information is correct as of November 2011.