LLE loan repayments

Q1: How will repayments work for LLE?

A: Students must start repaying their loan once they’ve left their course and earn more than a certain amount. This amount is known as the repayment threshold. A student’s repayments will depend on what they earn over the threshold; not the total amount that's owed. Repayment of LLE loans will follow the repayment terms and conditions of Plan 5, introduced on 1 August 2023 for academic year 2023/2024 onwards.

This means that repayments will only start once a student earns more than £25,000 a year before tax, equal to £2,083 a month or £480 per week. The amount repaid is 9%, or 9p for every £1, of a learner's gross salary over the repayment threshold. For most, this is automatically deducted from their salary at the same time as tax and National Insurance. Repayments continue unless:

• students have repaid their loan
• a student's salary drops below the threshold
• a 40-year period has passed since the loan entered repayment status
• the borrower receives a disability-related benefit and because of the disability is permanently unfit to work and the loan is cancelled

Those with an existing undergraduate student loan, who then choose to use the residual entitlement they have left under the LLE to fund further undergraduate level study, will continue to make a single repayment of 9% of their gross salary above the repayment threshold.