Students applying for deferment can pay up to 60% of their loans in instalments, while those who have a deferment for one year or less can pay as little as 20%.
The maximum payment to a deferral borrower is £7,500, while an instalment payment is £1,000.
The student loan system has been plagued by financial instability since the financial crisis, but a recent report by the Resolution Foundation found that the system has helped people who would otherwise not be able to afford to repay their loans.
The report, released in October, found that deferment is the only repayment method that is affordable and is more sustainable than other options such as student loans and mortgages.
This week, the Guardian revealed how students are being forced to take out instalements to make ends meet as the system runs out of money.
Last week, David Cameron announced a new £4bn loan guarantee for the education sector, which will provide an extra £20bn in support to businesses and other institutions.
It is hoped that the £10bn in loans and grants will be enough to meet the shortfall in funding the government faces in the coming years, although the government has yet to provide a full list of how much money will be available to support students in the future.
“We want to ensure that the UK stays on the path to a more equitable future, so we’re investing in student loans for the future, to ensure every student can afford to stay in school,” said Theresa May, the Education Secretary.
But some students have found it difficult to pay off their loans without instalMENT payments.
One student, who asked to remain anonymous, told the BBC: “My dad’s student loan was due on April 20 and he was going to be living on it for six months, but he can’t afford it now, so he can only pay it off when it’s due, which is every two months.
He has to borrow from a friend, and he doesn’t have enough money to pay that back.”
This is one reason why many students find it difficult if they have to pay instalMENTS, but not all.
A 22-year-old student from Oxford told the Independent that she had to take instalMSD payments until her student loan payment was paid off in May.
She said: “I didn’t know if I was going into debt, but the idea of having to pay it all at once made me feel a bit stupid.
I am currently studying, so I’m not going to go into debt again.”
Another student from Glasgow, who wished to remain unnamed, said that the government is making it harder for people with student loans to repay.
They said: “I am not sure if I will be able pay the loan if I am to keep going, as the instal ment is now compulsory for all graduates.
If I don’t, I would have to take on a new loan for my final year of university.
My dad is studying a PhD in history, and I don.
There is also a requirement that I get a loan from a university that is approved by the government, which means I can’t pay it back.
So it’s been a bit of a struggle, but hopefully I can get the money in the near future.”