Question 1

When do I start repaying my student loan?

Accepted Answer

You start repaying from the April after you leave your course, but only if you earn above your plan's repayment threshold. If your income is below the threshold, you pay nothing.

Question 2

How much do I repay each month?

Accepted Answer

You repay 9% of your income above the repayment threshold (6% for Postgraduate Loans). For example, on Plan 2 with a £35,000 salary, you repay 9% of (£35,000 − £29,385) = £505.35 per year, or about £42 per month.

Question 3

Do I repay during my course?

Accepted Answer

No. Repayments don't start until the April after you leave or finish your course, regardless of whether you're working part-time during your studies.

Question 4

What happens if I earn below the threshold?

Accepted Answer

You pay nothing. Repayments are entirely income-contingent — if your income drops below the threshold at any point, repayments pause automatically.

Question 5

Are student loan repayments taken automatically?

Accepted Answer

If you're employed (PAYE), yes — your employer deducts repayments through payroll. If you're self-employed, you repay through your Self Assessment tax return.

Question 6

What are the current repayment thresholds?

Accepted Answer

For 2026/27: Plan 1 — £26,900, Plan 2 — £29,385, Plan 4 — £33,795, Plan 5 — £25,000, Postgraduate — £21,000.

Question 7

How is interest calculated on my student loan?

Accepted Answer

It depends on your plan. Plans 1 and 4 charge the lower of RPI + 1% or the Bank of England base rate + 1%. Plan 5 charges RPI only. Plan 2 charges between RPI and RPI + 3% based on your income. Postgraduate charges RPI + 3%.

Question 8

Can interest make my balance grow?

Accepted Answer

Yes. If you earn just above the threshold, your monthly repayments may be less than the interest. This is common on Plan 2 and Postgraduate Loans. But remember, the debt is written off after 25–40 years.

Question 9

Which plan am I on?

Accepted Answer

It depends on where and when you studied. England/Wales before Sep 2012: Plan 1. England/Wales from Sep 2012: Plan 2. Scotland: Plan 4. England from Aug 2023: Plan 5. Postgraduate Master's/Doctoral: Postgraduate plan.

Question 10

Can I be on more than one plan?

Accepted Answer

Yes. For example, if you did an undergraduate degree (Plan 2) and then a Postgraduate Master's Loan, you'd have both. They are repaid based on separate thresholds.

Question 11

What is Plan 5?

Accepted Answer

Plan 5 applies to new English undergraduate students from August 2023. It has a lower threshold (£25,000), lower interest (RPI only), and longer write-off (40 years).

Question 12

When is my student loan written off?

Accepted Answer

Plan 1: 25 years. Plan 2: 30 years. Plan 4: 30 years (or age 65 for pre-2007). Plan 5: 40 years. Postgraduate: 30 years. After this period, any remaining balance is cancelled.

Question 13

Do I pay tax on the written-off amount?

Accepted Answer

No. Student loan write-offs are not treated as income and are completely tax-free.

Question 14

What happens if I die or become permanently disabled?

Accepted Answer

The loan is cancelled in full on death. It may also be cancelled for permanent disability — you'd need to apply to the SLC with medical evidence.

Question 15

Will most people repay their loan in full?

Accepted Answer

No. Government and IFS estimates suggest ~70–75% of Plan 2 borrowers will NOT repay in full. For many, the student loan functions more like a graduate tax.

Question 16

Can I make voluntary overpayments?

Accepted Answer

Yes. You can make additional repayments to the SLC at any time with no early repayment fees or penalties.

Question 17

Should I overpay my student loan?

Accepted Answer

Only if you would repay in full before write-off. If your loan will be written off, overpaying is like voluntarily paying more of a debt that would be cancelled for free.

Question 18

What if I move abroad?

Accepted Answer

You still have to repay. You must inform the SLC and they will set fixed repayment amounts based on the cost of living in your country.

Question 19

What if I have multiple jobs?

Accepted Answer

Each employer only deducts based on earnings at that job. If your combined income is above the threshold but each job is below it, HMRC may collect the difference via your tax return.

Question 20

Does salary sacrifice affect student loan repayments?

Accepted Answer

Yes. Salary sacrifice reduces your gross pay, which reduces student loan repayments. However, "relief at source" pension contributions do NOT affect repayments.

Frequently Asked Questions

Repayment Basics

Thresholds & Interest

Loan Plans

Write-Off & Cancellation

Overpayments

Special Circumstances

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