The Sunday Telegraph - Sunday

HOW DO STUDENT LOANS WORK?

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1

Tuition fees are now as high as £9,250 a year, with most institutio­ns charging the maximum. New students can also borrow up to £12,382 a year for living costs, depending on where they study and their parents’ income

2

Graduates pay back what they owe, plus interest, out of the income they earn above a certain threshold. Anything that is not repaid within 30 years is written off

3

Starting from the April after your graduation, you pay back a portion of the amount you earn over a threshold set by the Government, which is taken directly from your wages, unless you are self-employed

4

For current graduates this level is £27,295 before tax in England and Wales. The thresholds change most years. If it increases, you will end up paying back less per month. If you earn less than the threshold, you will pay nothing

5

Only tuition fee loans and maintenanc­e loans need to be repaid. Grants, bursaries and scholarshi­ps do not

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