Repayments

You only start repaying your student loans after you leave your degree programme and are earning over the threshold of the repayment plan you are on.

• If you have a Plan 1 student loan:

You’ll only repay when your income is over £423 a week or £1,834 a month (before tax and other deductions).  

• If you have a Plan 2 student loan:

You’ll only repay when your income is over £524 a week, £2,274 a month or £27,295 a year (before tax and other deductions).

The thresholds change on 6 April every year.

Key points

• You do not have to pay tuition fees upfront.
• You only pay back your loan when you earn the threshold amount according to the plan you are on.
• The amount will automatically be taken out of your salary.
• Student loans do not go on credit files.
• Repayments are made over the course of 30 years.
• After 30 years, even if you haven’t finished paying the loan, it is wiped off.

How loan repayments work

• Repayments on your loan will start in the April after you leave the University, provided you are earning over the threshold according to the plan you are on for repayment.
• If your income falls below the threshold your repayments stop - for example if you take a career break or are unemployed - until you start earning over the threshold again.
• All your student loans are added together and your employer will automatically take repayments from your salary, at the same time as they take tax and National Insurance contributions.
• If you are self-employed, HM Revenue & Customs will collect your repayments through the self-assessment system, along with your tax.
• Any outstanding balance is written off after 30 years.

Further details on the repayment of student loans can be found on the UK Government website.