Fees and funding
Government loans
How much will I have to pay back and when?
You will not have to pay your tuition fees up front as the Government
will provide UK and EU students with a tuition fee loan which you only start
to repay after graduation, once you are earning over £21,000.
The repayment structure will mean you are required to pay nine per cent
of your annual income above a £21,000 threshold, with any outstanding
repayments written off after 30 years. So, someone earning a salary of
£25,000 would repay around £30 per month. The process for repayment is
simple as payments are deducted automatically from your pay through the tax
system. Repayments start in the April after you graduate, even if you
already earn over £21,000.
What rate of interest will I pay on these loans?
In order to make the system financially sustainable, a real rate of
interest will be charged on loan repayments, but with a progressive taper.
This means, for graduates earning below £21,000, interest will be applied at
the rate of inflation, while for graduates earning between £21,000 and
around £41,000, interest at the rate of inflation plus up to three per cent
will be charged. For graduates earning above £41,000, interest at the rate
of inflation plus three per cent will be charged.