Plans 1, 2, 4 and 5, at 2026/27 thresholds

Will you ever pay it off?

Most people will not, and that is how the thing is designed. You pay nine per cent of whatever you earn above a threshold, nothing at all on the rest, and the balance is written off after thirty or forty years whether you have cleared it or not. What matters is not the balance. It is what leaves your pay each month.

01  What you pay

Gross pay for the year. Bonuses and overtime count towards it, because the deduction is taken from what you actually earn each pay period.
Which plan you are on
A postgraduate loan as well

A masters or doctoral loan is deducted on top of the plan above, not instead of it.

Taken from your pay each month £0 £0 over a full year
Salary before tax £0
Plan Plan 2
Threshold, which the loan never touches £0
What is left, and all that counts £0
Taken from that 9%

02  What this actually is

A student loan behaves like a graduate tax that stops one day, not like a debt. Nothing is taken while you earn under the threshold, the deduction rises and falls with your pay, and the balance is written off at the end whether or not you have cleared it.

That is why the balance on your statement is the least useful number on it. Nobody chases you for it, it never appears on a credit file, and for most people it is written off with a large amount still outstanding. The number that changes your life is the one above: what comes out of each payslip.

  • It comes out through PAYE. Your employer takes it with tax and National Insurance, so you never handle it. Self-employed people pay through Self Assessment instead.
  • Paying it off early usually costs you money. Unless you are on a high salary and close to clearing it, overpaying is money you hand over for a debt that would have been written off.
  • Interest is mostly theatre. It changes the balance, and for the majority of borrowers the balance is never what they repay. What they repay is nine per cent of what they earn over the threshold, for as long as the loan runs.
  • Tell the Student Loans Company if you move abroad. Overseas thresholds differ by country, and not telling them is how people end up with penalties.
  • Nothing leaves your browser. The sum runs on this page. No salary is sent anywhere or stored.

How the deduction reaches your payslip

Student loan repayments are taken automatically from your salary through PAYE if you're employed, or you pay through self-assessment if you're self-employed. You only start repaying once you earn above the threshold for your loan plan.

Current repayment thresholds (2026/27)

Plan Type Annual Threshold Rate
Plan 1 £26,900 9%
Plan 2 £29,385 9%
Plan 4 £33,795 9%
Plan 5 £25,000 9%

Which plan am I on?

Plan 1

You're on Plan 1 if you:

Plan 2

You're on Plan 2 if you:

Plan 4

You're on Plan 4 if you:

Plan 5

You're on Plan 5 if you:

How repayments work

Repayments are calculated based on how much you earn above the threshold for your plan type:

Example: If you're on Plan 2 and earn £35,000 per year, you'll repay 9% of £5,615 (£35,000 - £29,385) = £505.35 per year, or £42.11 per month.

When do loans get written off?

Plan Type Written Off After
Plan 1 25 years or when you reach 65
Plan 2 30 years
Plan 4 30 years
Plan 5 40 years

Voluntary repayments

You can make voluntary repayments at any time if you want to pay off your loan faster. However, remember:

Frequently asked questions

What if I have multiple jobs?

If you have more than one job, repayments are calculated separately for each employer based on what they pay you. You may need to contact the Student Loans Company if you're overpaying.

What if I'm self-employed?

Self-employed workers make repayments through their Self Assessment tax return. You'll pay based on your profits, not your turnover.

Do I pay if I move abroad?

Yes, you still need to repay your student loan if you move abroad. You'll need to contact the Student Loans Company to arrange payments. Thresholds may differ depending on where you live.

Does my student loan affect my credit score?

No. Student loans don't appear on your credit report and don't affect your credit score. However, lenders may consider your student loan repayments when assessing mortgage affordability.

Can I check my loan balance?

Yes, you can check your loan balance by logging into your Student Loan Company account online. You'll see how much you owe and how much you've repaid.