Martin Lewis has advised students who are concerned about paying back their student loans in the current climate.
Students can borrow money under two loans from the Student Loans Company – one loan to cover university or college tuition fees and another loan to cover living expenses.
These are then pooled and repaid by the students as one loan.
You cannot repay the borrowed money until you have earned a certain amount.
From the day you take out the loan, you will be billed for interest in the loan and terms and conditions are subject to change.
Martin said tonight (March 11th) on the Martin Lewis Money Show, “The first thing to say is that you don’t need the money to prepay the tuition. If you have tuition, they will be paid by the student loan company paid. ” You as long as your first time studying.
“Then that loan is offset against the living loan you receive and you pay it back as one.
“Now the key is to understand what you are paying back, what you are making.
“You don’t start repaying until you earn more than £ 27,295 – that’s the number for the next tax ear from April, when students start in September. That’s England and Wales.
“Northern Ireland is around £ 19,000, in Scotland in April it is about to go from around £ 19.00 to £ 25,000 – and that goes for existing Scottish students as well, so you will be paying back a lot less in April if you do are a Scottish graduate
“As soon as you earn more, you pay back 9% of everything. The more you make each year, the more you pay back.”