You pay back 9% of your income over the Plan 1 threshold (£382 a week or £1,657 a month). If your income is under the Plan 4 threshold (£480 a week or £2,083 a month), your repayments only go towards your Plan 1 loan. If your income is over the Plan 4 threshold, your repayments go towards both your loans.

How much of student loan debt is interest?

The average student loan interest rate is 5.8% among all households with student debt, according to a 2017 report by New America, a nonprofit, nonpartisan think tank. That includes both federal and private student loans — about 90% of all student debt is federal.

What kind of interest rate do I get for my student loan?

You have 2 interest rate options to choose from: These rates are subject to change as the prime rate varies. Please contact the NSLSC to confirm the current rate. By default, your student loan has a floating interest rate. You can change to a fixed interest rate at any time, after you enter repayment.

How much do I pay back on my student loan each month?

This means that each month your income is £2,250 (£27,000 divided by 12). This is over the Plan 1 monthly threshold of £1,615. Your income is £635 over the threshold (£2,250 minus £1,615). You will pay back £57 (9% of £635) each month. You currently pay interest of 1.1% on Plan 1.

Can you change the interest rate on a student loan?

Please contact the NSLSC to confirm the current rate. By default, your student loan has a floating interest rate. You can change to a fixed interest rate at any time, after you enter repayment. If you switch to a fixed rate, you will however not be able to change back to a floating rate.

Which is the best way to pay off student loans?

Pay your student loans off early. If you have fewer or smaller loans, or if your loans have high interest rates that would cost much more over time, paying student loans back early may be the best option for you.