Once you start earning a certain amount of money, your student loans are repaid automatically through the tax system.
Deductions stop once you’ve paid them off.
Interest will be charged on the outstanding debt, but you only have to make repayments once you begin earning enough.
As a graduate, you don’t have to start paying back your student loan until:
- the April after you leave your course, or
- the April 4 years after the course started, if you’re studying part-time.
It might be even longer if you're out of work or don’t earn above the minimum earning threshold which changes each year. If something unexpected happens, such as losing your job, your repayments will stop until your income reaches the threshold again.
Unlike other debts, you don’t have to make repayments if your income drops, so you shouldn’t prioritise paying your student loan over your overdraft or credit cards.