Student loans and how they’re repaid works differently from other types of borrowing. For example, did you know you will only repay when your income is over a certain amount? Or that if you have an outstanding balance at the end of your loan term it will be written off?
It’s important to understand these differences, so you know what to expect when it comes to repaying your student loan.
To make things easier, we’ve put together a list of 8 things you might not know about your student loan, but definitely should.
1. There are different rules for repaying based on when and where you took out your loan
The type of loan you have will depend on when and where you started studying. This is known as your plan type. Each plan type has a different set of rules for repaying so it’s important you understand which plan type you’re on so you can better manage your repayments.
2. Your repayments are based on your income, not how much you borrowed
Unlike other borrowing, what you repay depends on your income and not how much you owe. You repay 9% of your income above the repayment threshold for your plan type. If you’re not working or your income is below the threshold, you won’t make any repayments.