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When you start repaying your student loan and how much you repay depends on your repayment plan. If you’re unsure which plan you’re on, you can check by signing into your Student Finance account.
You cannot choose your repayment plan—it is automatically assigned based on when you started your course and the type of loan you took out. In some cases, if you have multiple loans, you might be on more than one repayment plan simultaneously.
What Are the Different Types of Student Loan Repayment Plans in the UK?
The UK has five different student loan repayment plans. Each plan has its own repayment threshold, meaning you only start repaying when your income exceeds a certain amount.
1. Plan 1:
- Applies to students who started before 1 September 2012 in England and Wales.
- Repayments start when earning above £24,990 per year.
- Interest rate is the lower of the Retail Price Index (RPI) or the Bank of England base rate + 1%.
2. Plan 2:
- Applies to students who started their undergraduate course between 1 September 2012 and 31 July 2023.
- Repayments start when earning above £27,295 per year.
- Interest rates range between RPI and RPI + 3%, depending on income.
3. Plan 4:
- Applies to Scottish students who took out a loan through Student Awards Agency Scotland (SAAS).
- Repayments start when earning above £31,395 per year.
- Interest rate is based on RPI.
4. Plan 5:
- Applies to students who started an undergraduate course on or after 1 August 2023.
- Repayments start when earning above £25,000 per year.
- Loan is written off after 40 years instead of 30.
5. Postgraduate Loan Plan:
- Applies to students who took out a Master’s or Doctoral Loan.
- Repayments start when earning above £21,000 per year.
- Repayment rate is 6% of income above the threshold.
How Can You Check Which Student Loan Plan You Are On?
Your student loan repayment plan determines when you start repaying, how much you pay each month, and what interest rate applies. Since you cannot choose your repayment plan, it’s essential to know which one you’re on to manage your finances effectively.
If you’re unsure about your repayment plan, you can check it by:
- Signing in to Your Student Loan Account:
The easiest way to confirm your repayment plan is to log in to your online Student Finance account on the official Student Finance England website. Once logged in, you can:
- View details of your loan, including the repayment plan type.
- Check your remaining balance and interest rate.
- Track past and upcoming repayments.
If you have multiple loans (e.g., an undergraduate loan and a postgraduate loan), you might be on different repayment plans simultaneously.
- Checking Your Payslip or P60 Form:
If you’re employed, your payslip should indicate whether student loan deductions are being made. However, it may not specify the plan type. If in doubt, you can:
- Ask your employer or payroll department which plan is being deducted.
- Check your P60 (end-of-year tax statement) for student loan deductions.
- Contacting the Student Loans Company (SLC) or HMRC:
If you cannot determine your plan through your online account or payslip, you can:
- Call the Student Loans Company (SLC) at 0300 100 0611 (UK residents) for assistance.
- Contact HM Revenue & Customs (HMRC) if you are self-employed or repaying through self-assessment.
Which Repayment Plan Are You On?
Your repayment plan depends on when you started your course and the type of course you studied.
If You Applied to Student Finance England (SFE)
- If You Started Your Course on or After 1 August 2023:
You’ll be on Plan 5 if you:
- Are studying an undergraduate course.
- Are studying a Postgraduate Certificate of Education (PGCE).
- Took out an Advanced Learner Loan.
If you are studying a postgraduate master’s or doctoral course, you will be on a Postgraduate Loan Plan.
If you take out a Higher Education Short Course Loan, you will be on Plan 2.
- If You Started Your Course Between 1 September 2012 and 31 July 2023:
You’ll be on Plan 2 if you:
- Studied an undergraduate course.
- Studied a Postgraduate Certificate of Education (PGCE).
- Took out an Advanced Learner Loan.
- Took out a Higher Education Short Course Loan.
If you studied a postgraduate master’s or doctoral course, you will be on a Postgraduate Loan Plan.
- If You Started Your Course Before 1 September 2012:
You are on Plan 1 if you:
- Studied an undergraduate course before September 2012 in England or Wales.
Scottish students who studied before 1998 may be on a mortgage-style loan, which has different repayment terms.
Why Is It Important to Know Your Repayment Plan?
Understanding your repayment plan helps you:
- Budget better by knowing when repayments start and how much you’ll owe each month.
- Avoid overpayments if you’re repaying more than necessary.
- Prepare for loan write-offs, as different plans have different cancellation rules.
By checking your repayment plan early, you can ensure you are financially prepared and avoid any surprises when repayments begin.
How Does Your Student Loan Repayment Work?
When Do You Start Repaying?
You’ll only start making student loan repayments when your income is above the repayment threshold for your plan. The thresholds are updated every 6 April.
The earliest you will start repaying your loan is:
- The April after you leave your course.
- Four years after starting a part-time course, if it lasts longer than four years.
- April 2026 if you’re on Plan 5.
Your repayments will automatically stop if:
- Your income drops below the threshold.
- You stop working.
How Much Will You Repay?
The amount you repay for your student loan depends entirely on your income—not on how much you borrowed. Your repayments are based on your earnings before tax and other deductions, including:
✅ Your salary from employment
✅ Bonuses and overtime payments
✅ Self-employed income (if applicable)
You only start making repayments when your income goes above the repayment threshold for your plan. If your income is below the threshold, you won’t have to pay anything.
How Are Student Loan Repayments Calculated?
Your repayments are calculated as a percentage of your income over the threshold, based on your repayment plan:
- Plan 1, Plan 2, Plan 4, and Plan 5: 9% of income above the threshold
- Postgraduate Loan: 6% of income above the threshold
The income thresholds vary depending on your loan plan. If your salary fluctuates, your repayments will increase or decrease accordingly.
Student Loan Repayment Thresholds (2024-2025)
| Loan Plan | Yearly Threshold | Monthly Threshold | Weekly Threshold |
| Plan 1 | £24,990 | £2,082 | £480 |
| Plan 2 | £27,295 | £2,274 | £524 |
| Plan 4 | £31,395 | £2,616 | £603 |
| Plan 5 | £25,000 | £2,083 | £480 |
| Postgraduate Loan | £21,000 | £1,750 | £403 |
Important: If your income falls below the threshold, your repayments will automatically stop.
Student Loan Repayment Examples
To help you understand how repayments work, here are a few examples based on different loan plans and incomes:
Example 1: Plan 1 Loan (Pre-2012 Loans)
- Annual salary: £33,000
- Monthly salary: £2,750
- Plan 1 monthly threshold: £2,082
Calculation:
£2,750 – £2,082 = £668 (amount above the threshold)
9% of £668 = £60.12
Monthly repayment: £60
Example 2: Plan 4 Loan (Scottish Students)
- Annual salary: £36,000
- Monthly salary: £3,000
- Plan 4 monthly threshold: £2,616
Calculation:
£3,000 – £2,616 = £384 (amount above the threshold)
9% of £384 = £34.56
Monthly repayment: £34
What If Your Income Changes During the Year?
If you earn more in some months (due to a bonus, overtime, or commission), you may make higher repayments for that month. However, if your total annual salary is below the yearly threshold, you may be eligible for a refund at the end of the tax year.
Example:
- Your monthly salary is £2,000 (below the threshold).
- You receive a £500 bonus, making your total £2,500 for that month (above the threshold).
- Student loan repayments will be deducted for that month.
- If your total yearly income remains below the annual threshold, you can apply for a refund.
How Does Interest Affect Your Student Loan?
Your student loan accrues interest from the day you take it out. The interest rate depends on your repayment plan and may change over time.
Current Student Loan Interest Rates (2024-2025):
| Loan Plan | Interest Rate |
| Plan 1 | 4.3% |
| Plan 2 | 4.3% to 7.3% (income-based) |
| Plan 4 | 4.3% |
| Plan 5 | 4.3% |
| Postgraduate Loan | 7.3% |
Plan 2 Interest Explained:
For Plan 2 loans, the interest rate changes depending on your income:
| Annual Income | Interest Rate |
| £27,295 or less | 4.3% |
| £27,296 to £49,130 | 4.3% + up to 3% |
| £49,130 or more | 7.3% |
This means that higher earners pay more interest, which can affect how quickly the loan is repaid.
What If You Have More Than One Loan Plan?
If you took out multiple loans, your repayments depend on which loan has the lowest repayment threshold.
Scenario 1: Plan 1 + Plan 2 Loan
- Annual income: £26,400
- Plan 1 threshold: £24,990 (lowest)
- Plan 2 threshold: £27,295
Calculation:
Since your income is above Plan 1’s threshold but below Plan 2’s threshold, you only repay:
£26,400 – £24,990 = £1,410
9% of £1,410 = £10.62 per month
Note: Even though you have a Plan 2 loan, you only make repayments based on Plan 1’s threshold.
Scenario 2: Plan 2 Loan + Postgraduate Loan
- Annual income: £28,800
- Plan 2 threshold: £27,295
- Postgraduate threshold: £21,000
Calculation:
- Plan 2 Repayment:
£28,800 – £27,295 = £1,505
9% of £1,505 = £11 per month - Postgraduate Loan Repayment:
£28,800 – £21,000 = £7,800
6% of £7,800 = £39 per month
Total monthly repayment: £50 (£39 + £11)
What If You Have More Than One Job?
Your repayments are based on each individual job’s salary, not your total combined income.
Scenario 1: Two Jobs, No Repayments Required
- Job 1 Salary: £1,000/month
- Job 2 Salary: £800/month
- Plan 1 threshold: £2,082/month
No repayments because neither job exceeds the threshold.
Scenario 2: One Job Over the Threshold
- Job 1 Salary: £2,300/month
- Job 2 Salary: £500/month
- Plan 2 threshold: £2,274/month
You will only make repayments on the £2,300 salary, since it exceeds the threshold.
What If You’re Self-Employed?
If you’re self-employed, your student loan repayments are made through HMRC’s self-assessment system.
How It Works:
- HMRC calculates your total income for the year.
- Repayments are added to your tax bill and paid in one lump sum.
- If you already made PAYE repayments from a job, HMRC will deduct them from the final amount owed.
How to Repay Your Student Loan?
Repaying your student loan is straightforward, as payments are automatically deducted from your salary or paid through self-assessment if you’re self-employed. However, understanding the different repayment methods, checking for overpayments, and managing repayments while abroad can help you stay in control of your finances.
How Do Employee Repayments Work?
If you are employed in the UK, your student loan repayments are automatically deducted from your salary at the same time as:
- Income Tax (PAYE)
- National Insurance Contributions (NICs)
How to Check Your Repayments?
Your payslip will show how much has been deducted for your student loan each month. You should:
✅ Check your payslip regularly to ensure your employer has the correct repayment plan assigned to you.
✅ Review your P60 (end-of-year tax statement) to track total repayments made during the tax year.
✅ Log in to your online Student Loans Company (SLC) account to check your balance and payment history.
Tip: If you notice incorrect deductions (e.g., too much or too little), contact your employer immediately or reach out to the Student Loans Company (SLC) for clarification.
How Do Self-Employed Repayments Work?
If you are self-employed, student loan repayments are handled through HM Revenue & Customs (HMRC) as part of your Self-Assessment Tax Return.
Key Points for Self-Employed Repayments:
✅ Your repayment amount is calculated annually based on your self-assessment tax return.
✅ You pay at the same time as your income tax and National Insurance.
✅ HMRC will deduct any PAYE repayments already made from a salaried job before calculating the final amount due.
✅ You need to submit your Self-Assessment Tax Return by 31 January each year.
Tip: Use HMRC’s student loan repayment calculator to estimate how much you’ll need to repay before filing your return.
What If You’re Employed But Also File a Tax Return?
If you earn income from multiple sources (e.g., a job and freelance work), your employer will deduct student loan repayments automatically from your salary, while HMRC will calculate additional repayments through your tax return.
Steps to Track Your Repayments:
✅ Check your payslips to see how much has been deducted.
✅ Keep a record of your P60 (end-of-year tax statement) to track total repayments made by your employer.
✅ Include PAYE deductions in your Self-Assessment Tax Return to avoid overpaying.
Example: If your employer deducted £500 towards your student loan throughout the year, but your total repayment due (based on self-employment income) is £1,000, HMRC will ask you to pay the remaining £500 when you file your tax return.
How to Repay Your Loan If You Move Abroad?
If you leave the UK for more than three months, you must notify the Student Loans Company (SLC) and continue making repayments.
Steps to Repay Your Loan While Abroad:
✅ Update your contact and employment details in your online Student Finance account.
✅ Submit proof of your foreign income (such as payslips or bank statements).
✅ Make repayments based on the repayment threshold for your country of residence.
Important: If you do not update your details, SLC may assume you are earning above the threshold and charge a higher repayment rate.
Repayment Thresholds for Different Countries:
If you’re living outside the UK, your repayment threshold may be different. SLC will determine your repayment amount based on:
- The minimum income threshold for your country
- Your income in local currency
Once SLC calculates your required repayment, you can make payments through:
✅ Your online student loan account (debit/credit card or Direct Debit)
✅ International Bank Transfer (IBAN & SWIFT details provided by SLC)
SLC’s International Bank Transfer Details
| Banking Details | Information |
| IBAN | GB37NWBK60708010027254 |
| SWIFT Code | NWBKGB2L |
| Bank | NatWest Government Banking Team |
| Address | NatWest Customer Service Centre, Brampton Road, Newcastle-under-Lyme, Staffordshire, ST5 0QX |
Tip: Always use your Customer Reference Number as a reference when making international repayments.
What Happens If You Return to the UK?
If you move back to the UK after more than three months abroad, you must update your employment details in your online SLC account.
If you don’t update your details, SLC will continue charging the repayment rate for your previous country, which could mean:
Paying more than necessary
Being charged a higher interest rate
How to Check Your Student Loan Repayments?
You can track your repayments and remaining loan balance in the following ways:
1. Online Student Loan Account – Log in to your SLC account to view your loan balance, payments made, and interest accrued.
2. Annual Statements from SLC – Every year, you’ll receive a student loan statement showing total repayments.
3. Payslips & P60 – Check your payslips for monthly deductions and review your P60 at the end of the tax year.
Tip: If your contact details change, update them in your SLC account to ensure you receive important updates about your loan.
Difference Between Student Loan Plan Types in the UK
Understanding the differences between student loan plan types is crucial for managing your repayments effectively. Each plan has its own repayment threshold, interest rate, and loan write-off period. The plan you’re on depends on when you started your course and where you studied.
This guide compares Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate Loan plans to help you understand how they work and what sets them apart.
Student Loan Plan Comparison Table:
| Loan Plan | Who It Applies To? | Repayment Threshold (Annual) | Repayment Rate | Interest Rate (2024-25) | Loan Write-Off Period |
| Plan 1 | Students who started before 1 September 2012 (England & Wales) | £24,990 | 9% of income above the threshold | 4.3% | 25 years (or when you turn 65) |
| Plan 2 | Students who started between 1 September 2012 and 31 July 2023 | £27,295 | 9% of income above the threshold | 4.3% to 7.3% (income-based) | 30 years |
| Plan 4 | Scottish students | £31,395 | 9% of income above the threshold | 4.3% | 30 years |
| Plan 5 | Students who started on or after 1 August 2023 (England) | £25,000 | 9% of income above the threshold | 4.3% | 40 years |
| Postgraduate Loan | Master’s or Doctoral students | £21,000 | 6% of income above the threshold | 7.3% | 30 years |
Can You Pay Off Your Student Loan Early?
Yes! You can make voluntary repayments at any time without penalties.
Before making early repayments, consider:
- Your current financial situation – Extra payments won’t reduce your monthly deductions.
- The likelihood of your loan being written off – Many borrowers never fully repay their loans before they are wiped.
What Happens If You Move Abroad With a UK Student Loan?
If you move outside the UK, you still need to repay your student loan.
- Notify the Student Loans Company (SLC) before leaving the UK.
- You will be given a new repayment threshold based on the country’s cost of living.
- Repayments are made directly to the SLC, not deducted from your salary.
Failure to inform the SLC could lead to penalties or extra charges.
What Happens If You Don’t Earn Enough to Repay Your Student Loan?
If your income is below the repayment threshold:
- You won’t have to make repayments.
- Interest will still accrue on your loan.
- Your repayments resume automatically when your income rises above the threshold.
If you’re struggling financially, you can contact Student Finance England for support.
When Is Your Student Loan Written Off?
If your loan is not fully repaid within a set timeframe, the remaining balance is automatically cancelled.
| Plan Type | Loan Written Off After |
| Plan 1 | 25 years (or at age 65) |
| Plan 2 | 30 years |
| Plan 4 | 30 years |
| Plan 5 | 40 years |
| Postgraduate Loan | 30 years |
Once written off, you don’t need to make any more repayments.
How Can You Manage Your Student Loan Repayments Effectively?
To stay on top of your student loan:
- Use a repayment calculator to estimate your payments.
- Check your payslip to ensure deductions are correct.
- Keep your details updated with the Student Loans Company.
- Consider voluntary repayments if financially beneficial.
Managing your student loan wisely can prevent unexpected payments and help you budget effectively.
FAQs About Student Loan Plan Type
What is the difference between Plan 1 and Plan 2 student loans?
Plan 1 loans have lower repayment thresholds and fixed interest, while Plan 2 loans have higher thresholds and variable interest rates based on income.
How can I check if my employer is deducting the correct student loan repayment?
You can check your payslip or log in to your Student Finance account to confirm your repayment status.
Can I switch from one student loan plan to another?
No, your plan is determined by when you started your course. However, if you take out new loans for additional studies, you may have multiple repayment plans.
What happens if I miss a student loan payment?
If you are employed, repayments are automatically deducted. If self-employed, missing payments may result in penalties from HMRC.
Will my student loan affect my credit score?
No, student loans do not appear on credit reports and do not affect mortgage applications directly.
Can I stop paying my student loan if I leave the UK?
No, you must still repay your loan based on your overseas income.
Do self-employed people repay student loans differently?
Yes, self-employed borrowers pay through self-assessment to HMRC instead of PAYE deductions.