Loan repayment - students from Northern Ireland

If you go to University in September 2013, you will begin repaying your student loans from the April following the completion of your course if your annual earnings exceed the relevant earnings threshold.

What amount will you repay?

You will repay nine per cent of any amount you earn which exceeds the relevant earnings threshold (the threshold will be £16,365 in 2013 and will increase annually in line with inflation). A borrower who earns £25,000 can be expected to repay around £65 per month.

If there is a drop or increase in your earnings, the amount of your monthly repayment will alter accordingly.

Unlike commercial loans, interest is applied annually on the student loan at the rate of inflation (using Retail Prices Index) which through time maintains, in real terms, the loan at the same value as at the time it was borrowed.

How long will it take to repay your loan?

The length of time it will take you to repay your loan will depend on how much you earn each year; the more you earn, the greater your monthly repayment amounts will be.

Any outstanding loan balance that remains unpaid after 25 years will be written off.

Repayment arrangements are not different if you decide to study in England, Scotland or Wales, where the fees are set to increase to £9,000. You will also begin repaying your loan when your annual earnings exceed the repayment threshold (which will be £16,365 in 2013 and will increase in line with inflation each year). You will repay at the rate of 9 per cent of any amount which exceeds the earnings threshold.

More useful links

• Careers Service Northern Ireland