Frequently Asked Questions

Your loan plan depends on when and where you studied:

• Plan 1: England/Wales before Sep 2012, or Northern Ireland
• Plan 2: England/Wales from Sep 2012 to Jul 2023
• Plan 4: Scotland (any time)
• Plan 5: England from Aug 2023 onwards
• Postgraduate: Master's or Doctoral loans in England/Wales

Use our Plan Finder tool if you're unsure.

You start repaying the April after you leave your course, but only if you earn over the threshold. If you earn below the threshold, you pay nothing.

Current thresholds (2025/26): Plan 1 = £26,065 | Plan 2 = £28,470 | Plan 4 = £32,745 | Plan 5 = £25,000 | Postgrad = £21,000

You repay a percentage of everything you earn over the threshold: 9% for undergraduate loans, 6% for postgraduate loans. For example, if you're on Plan 2 earning £35,000, you repay 9% of £6,530 (£35,000 - £28,470) = ££48.98/month.

Yes, if you're employed, your employer deducts repayments through PAYE (like income tax). If you're self-employed, you pay through Self Assessment. If you have multiple jobs, it can get complicated — see our multiple jobs guide.

No, you can't pause repayments while employed. However, if your income drops below the threshold (e.g., during maternity leave, unemployment, or career break), repayments stop automatically. If you move abroad, you may need to contact SLC about alternative arrangements.

You can make voluntary overpayments at any time with no penalty. However, overpaying isn't always the best financial decision, many borrowers won't repay their full loan before it's written off.

Check our overpaying guide to see if it makes sense for you.

You repay both simultaneously: 9% of income over the undergraduate threshold, plus 6% over the postgraduate threshold (£21,000). Use our combined calculator to see your total repayments.

No. Student loans don't appear on your credit report and repayments (or non-repayments) don't affect your credit score. However, lenders may factor your repayments into affordability assessments for mortgages.

Interest varies by plan:

• Plan 1 & 4: Lower of RPI or Bank of England base rate + 1%
• Plan 2: RPI + 0-3% depending on income (though currently capped)
• Plan 5: RPI only (no income-based addition)
• Postgrad: RPI + 3% (though currently capped)

See our interest rates guide for current rates.

Your loan is written off after a set period from the April after you left your course:

• Plan 1: 25 years (or age 65, whichever comes first)
• Plan 2: 30 years
• Plan 4: 30 years (or age 65)
• Plan 5: 40 years
• Postgrad: 30 years

No. When your student loan is written off, you don't pay any tax on the cancelled debt. It simply disappears.

No. Student loans are written off upon death and cannot be passed to family members or anyone else. Your estate is not responsible for the debt.

It depends on the plan. Plan 1 and Plan 4 thresholds typically increase with inflation. Plan 2 was frozen until 2027, and Plan 5 is frozen at £25,000 until at least 2027. Check our threshold guide for the latest figures.

The government can change loan terms retrospectively, including thresholds, interest rates, and write-off periods. This has happened before (e.g., the 2023 Plan 2 threshold freeze). There's no legal guarantee your terms will stay the same.

No. Your loan plan is fixed based on when you started your course. You cannot switch between plans, even if another plan would be more favourable.

You report your income and calculate repayments through Self Assessment each January. You may also need to make "payments on account" (advance payments). See our self-employment guide for details.

Each employer only deducts repayments on what they pay you. If each job pays under the threshold but your combined income is over, you may need to pay extra through Self Assessment. See our multiple jobs guide.

Yes. You must tell SLC when you move abroad, and they'll set repayment amounts based on the country's cost of living. Failing to update them can result in higher charges. See our moving abroad guide.

Repayments are based on your actual earnings. During statutory maternity pay (SMP), you'll likely pay less or nothing. Check our maternity leave guide.

Yes, but not through your credit score. Lenders include your student loan repayments in affordability calculations, which can reduce how much you can borrow. See our mortgages guide.

Usually not. Paying off your loan reduces your repayments but also depletes your deposit savings. Most people benefit more from having a larger deposit. However, if you're a high earner who will repay in full anyway, it might make sense to clear the loan first.

For most people, pension contributions are better due to tax relief and employer matching. See our pension vs overpayments guide.

Yes! Salary sacrifice reduces your gross pay, which lowers your repayments. Common schemes include pensions, cycle to work, and electric vehicles. See our salary sacrifice guide.

Our calculators use the official SLC formulas and current thresholds/rates. However, they're based on assumptions about future salary growth, inflation, and interest rates — none of which can be predicted with certainty. Use them for planning, not precise predictions.

This is common, especially for Plan 2 and Plan 5 borrowers. Based on your salary projections, your loan (plus interest) will be written off before you've repaid everything. This isn't a problem — the system is designed this way.

Interest accrues from the day you receive your loan. For Plan 2, interest was charged even while you were studying. The total you repay depends on your earnings over 30+ years, not your original loan amount.

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