A fast gu
The education loan repayments just begin when you graduate and begin earning significantly more than ?21,000 however the interest begins accruing the minute you are taking out of the loan. There appears to be lots of confusion generally speaking about student education loans, and it’s also unsurprising actually. It is really not a simple loan and there are several factors to start thinking about.
In easy terms, the loan works the following:
- Interest begins accruing while you’re their studies at 3% over the RPI Retail cost Index (RPI) and thus this portion differs consistent with inflation. The RPI presently appears at 2.5% (2017) january. This means you are accruing interest at 5.5% if you are studying now and have a loan.
- As soon as you graduate your interest is accrued in the RPI before you begin earning ?21,000 or even more.
- As soon as you start making over ?21,000 you need to begin repaying your loan. Only at that true point you can expect to begin to be charged more interest but exactly what you’re charged will be different based on your income.