Understand how maternity, paternity, or shared parental leave affects your student loan repayments, balance growth, and potential refunds.
During parental leave, repayments stop or reduce, but interest continues to accrue. You may be entitled to a refund if your annual income falls below the threshold.
Threshold: £28,470 | Interest: 4.3%
Statutory pay available for up to 39 weeks (9 months)
Many employers offer enhanced maternity pay beyond statutory minimum
Percentage of full salary during enhanced pay period
Repayment Reduction
£-17,031
Less paid during leave
Interest Accrued
£1,444
During leave period
Balance Increase
£-17,858
From reduced payments
During your 12-month leave:
Long-term impact: Your loan balance will be approximately £-17,858 higher due to reduced payments. However, since most borrowers don't fully repay before write-off, this may have no real cost.
First 6 weeks:
90% of average weekly earnings
Weeks 7-39:
£184.03/week or 90% earnings (whichever is lower)
Your estimated monthly SMP:
£797
Note: This calculator assumes standard SMP rules. Actual pay may vary based on employer policies and individual circumstances.
| Month | Income | Repayment | Interest | Balance |
|---|---|---|---|---|
| 1 | £35,000 | £2,936 | £162 | £42,564 |
| 2 | £35,000 | £2,936 | £153 | £39,780 |
| 3 | £35,000 | £2,936 | £143 | £36,986 |
| 4 | £35,000 | £2,936 | £133 | £34,182 |
| 5 | £35,000 | £2,936 | £122 | £31,368 |
| 6 | £35,000 | £2,936 | £112 | £28,544 |
| 7 | £797 | £0 (paused) | £102 | £28,646 |
| 8 | £797 | £0 (paused) | £103 | £28,749 |
| 9 | £797 | £0 (paused) | £103 | £28,852 |
| 10 | £0 | £0 (paused) | £103 | £28,955 |
| 11 | £0 | £0 (paused) | £104 | £29,059 |
| 12 | £0 | £0 (paused) | £104 | £29,163 |
| Total | - | £17,619 | £1,444 | - |
Taking parental leave has significant implications for student loan repayments in the UK. While repayments pause or reduce when income drops, interest continues to accrue, disproportionately affecting women who take the majority of parental leave.
Check GOV.UK for official guidance on maternity, paternity, and shared parental leave entitlements, pay rates, and how to claim refunds on student loan overpayments.