Lana Oconnell
If you are a student in Northern Ireland, you can take out a loan to cover your tuition fees, which are paid directly to your university or college by Student Finance NI. Postgraduate students from Northern Ireland are on Plan 1, while students under 60 can also take out a maintenance loan and those with a mental health problem, long-term illness or another disability can apply for a disabled student allowance. Repayments usually start the April after you graduate or leave your course, or the April four years after the first day of your course, whichever comes first. You will only be required to start making repayments if your income exceeds a certain threshold, and these repayments will be collected through the tax system if you are employed or through self-assessment if you are self-employed.
| Characteristics | Values |
|---|---|
| When do you start paying back your student loan? | You start paying back your student loan the April after you leave your course or graduate. |
| How much do you pay back? | You pay back 9% of your earnings over £24,990 (or the monthly or weekly equivalent). |
| How do you pay it back? | If you are employed, student loan deductions are made automatically from your salary. If you are self-employed, you will be responsible for calculating and making your own repayments. |
| What if you are working abroad? | You will be required to make a repayment arrangement with the Student Loans Company. |
| What if you leave your course early? | You will still have to repay your student loan. |
| What if you have overpaid? | You will have to repay any overpayments. |
| What if you are a postgraduate student? | If you are a postgraduate student from Northern Ireland, you are on Plan 1. |
| What if you are disabled? | Your loan will be cancelled if you claim certain disability benefits. |
| What if you pass away? | Your loan will be cancelled and will not be passed onto your beneficiaries. |
| What if you are under 60? | You can get a maintenance loan. |
| What if you are a full-time student? | You can get a non-repayable maintenance grant of up to £3,475 per year. |
| What if you live in Northern Ireland and study in the Republic of Ireland? | You may be eligible for a loan to cover the full cost of the student contribution charge. |
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What You'll Learn
Postgraduate loans
The maximum Postgraduate Tuition Fee Loan available for the academic year 2024/25 is £6,500 or the actual tuition fee charged if less. This is paid directly to your university or college and is not based on your household income. If your tuition fee is higher than the maximum loan amount, you will need to pay the difference yourself.
If you are a postgraduate student from Northern Ireland, your loan will be written off 25 years after the April you were first due to repay, or when you turn 65, whichever comes first. You will start repaying your loan the April after you've finished your course. You will pay back 9% of anything you earn over the threshold, which is currently £26,065 a year, £2,172 per month, or £501 per week (before tax). Your loan will start accruing interest before you have even left your course; the rate is currently 4.3%.
If you are a student from Northern Ireland and you stay there to study, the maximum you will pay to your chosen university for tuition is £4,855 per year in 2025/26. If you study in the Republic of Ireland, you will only have to pay a student contribution charge of €3,000 per year. You can get a loan to cover this charge for the duration of your course, paid back under the same Plan 1 repayment system as if you studied in Northern Ireland.
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Interest rates
Student loans in Northern Ireland accrue interest from the date they are paid out until they are repaid in full. The interest rate for student loans typically applies from 1 September to 31 August each year. The interest rate is the lower of the Retail Price Index (RPI) at the preceding March or 1% above the highest base rate of a nominated group of banks, calculated regularly throughout the year. For example, if the RPI in March is 2.5%, the cap will be applied from 1 September of that year until 31 August of the following year, with an interest rate of 1.5%. If the RPI in March is 0.9%, the cap will not be applied, and the interest rate will be 0.9%.
The interest rate does not influence the monthly repayment amount but will impact the time taken to repay the loan. Interest rates are also subject to change based on inflation rates and the Bank Base Rate. For instance, if the inflation rate is lower than the Bank Base Rate +1%, the interest rate is set at the RPI.
For postgraduate students from Northern Ireland, loans are categorised under Plan 1. Loans under this plan are written off 25 years after the April you were first due to repay or when you turn 65, whichever comes first.
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Tuition fee loans
In Northern Ireland, tuition fee loans are available to all students, regardless of age. The maximum tuition fee loan available for Northern Irish students is £4,855 per year, which covers the full cost of tuition at Northern Irish universities.
If you are a Northern Irish student studying in the Republic of Ireland, you will pay a student contribution charge of €3,000 per year, which can also be covered by a tuition fee loan. This loan is paid back under the same 'Plan 1' repayment system as if you were studying in Northern Ireland.
Students from Northern Ireland can also apply for a maintenance loan to help with living costs, such as accommodation, food, and travel. The amount you can borrow depends on your household income, where you live while studying, and whether you are in the final year of your course. The maximum maintenance loan for Northern Irish students living at home with their parents is £5,250.
Repayments for tuition fee loans and maintenance loans typically start in April of the year after you graduate or leave your course, or April four years after the start of your course, whichever comes first. You will only start repaying your loan once you are earning over the repayment threshold for the country you are working in. Interest is applied to the loan from the date the first payment is made.
It is important to note that you should always check with your local Student Finance NI office to understand what tuition fee loan support is available and how much you are eligible to receive.
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Maintenance loans
In Northern Ireland, there are two types of loans available to eligible full-time students in higher education courses: the Tuition Fee Loan and the Maintenance Loan. The Tuition Fee Loan will be paid directly to your university or college by Student Finance NI. The Maintenance Loan, on the other hand, is intended to help with living costs, such as accommodation, food, textbooks, and travel.
The Maintenance Loan is available to new and continuing full-time students studying an eligible course. It can be applied for on its own or alongside any other available finance, including a Tuition Fee Loan, as part of the student finance application each year.
Interest is charged on any amount borrowed from the date the first payment is made. Repayments will begin the April after you graduate or leave your course, or the April four years after the first day of your course (whichever comes first). You will only start repaying your loan once you are earning over the repayment threshold for the country you are working in. Repayments will be collected through the tax system if you are employed or through self-assessment if you are self-employed.
If you are a full-time student, you may also be eligible for a non-repayable Maintenance Grant or Special Support Grant to help with accommodation and other living costs. The amount you receive in grants may affect the amount you are entitled to in the Maintenance Loan.
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Repayment thresholds
For students from Northern Ireland, the repayment threshold for Plan 1 loans is £26,065 per year. This means that students will be expected to pay 9% of any income over this amount towards their loan. This repayment threshold is the same for students working in Northern Ireland or any other part of the UK.
Students from Northern Ireland who study in the Republic of Ireland will pay back their loan under the same Plan 1 system, but their repayment threshold will be based on the income threshold for that country.
For students who took out a Plan 1 loan in the academic year 2005/2006 or earlier, their loan will not be written off until they reach 65 years old.
If a student's income falls below the repayment threshold, they will not be expected to make any payments.
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Frequently asked questions
You start repaying your student loan from the April after you leave your course or graduate. Repayments are only required if your income is above a certain threshold.
The repayment threshold for student loans in Northern Ireland is currently £26,065 a year, £2,172 per month or £501 per week.
Student loan repayments are made in one of three ways depending on your employment situation: PAYE, Self Assessment, or Overseas. If you are employed, PAYE deductions are made automatically from your salary. If you are self-employed, you will be responsible for calculating and making your own repayments.
The loan will be written off 25 years after the April you were first due to repay or when you turn 65, whichever comes first.
Yes, there are grants and allowances available that can help reduce the cost of your student loan. These include the Disabled Students' Allowance (DSAs) and the Special Support Grant.
