You choose a repayment term of between one and five years when you apply. You repay in fixed monthly instalments over that term.
The trade-off
- A longer term means lower monthly repayments, but you pay more interest in total.
- A shorter term costs less overall, but each monthly repayment is bigger.
The right term is one your personal survival budget can comfortably carry. Your advisor will help you choose. See What's the interest rate, and can it change? for the interest rate and a worked example.
Things that can affect your term
- A visa: the loan must be repaid at least six months before your visa expires, which can cap the term. See I'm on a visa: am I still eligible?.
- A capital repayment holiday: you can ask for three or six months at the start. See Can I take a payment holiday?.
You can still repay early
Picking a longer term doesn't lock you in. You can repay part or all of the loan early, at any time, with no penalty. See Can I repay the loan early?.
Last reviewed: 8 October 2026