HOW TO MAKE SENSE OF REPAYMENT RULES

GRADUATES start making repayments when they earn more than £25,725.

MINIMUM repayments are based on 9 pc of any earnings above the £25,725 threshold.

INTEREST rates are tied to the Retail Price Index (RPI) measure of inflation in March the previous year — currently 3.3 pc. In March 2019 inflation was 2.4 pc so interest rates will fall in September.

WHILE studying, interest is charged at rate of inflation plus 3 pc until April 6 after course completes.

INTEREST then falls to match rate of inflation until students earn over £25,725 and rises on a sliding scale to £46,305 to total inflation plus 3 pc.

ASSUMING an average £50,000 loan, graduates making minimum payments and earning £25,725 (with a 3 pc yearly pay rise), will repay £40,691 over the 30 year life of the debt. This is £9,309 less than they originally borrowed and means the remaining £153,100 debt (including interest) is wiped out.

THOSE earning £35,000 repay twice as much, £80,405, over 30 years, and £116,246 of unpaid interest is wiped.

REPAYING the total debt and all interest before the end of the 30-year term, applies to graduates earning £48,475. They would repay £138,102 — £88,102 more than they borrowed. Applies to student loans taken out in england and Wales from 2012.