See your monthly repayments, total interest, and exactly when your loan will be paid off or written off.
| Plan | Who it applies to | Repayment threshold | Rate | Written off after |
|---|---|---|---|---|
| Plan 1 | Started before 2012 (E/W) or any time (Scotland/NI) | £24,990/year | 9% | 25 years or age 65 |
| Plan 2 | Started 2012–2022 (England/Wales) | £27,295/year | 9% | 30 years |
| Plan 4 | Scottish students from 2006 | £31,395/year | 9% | 30 years |
| Plan 5 | Started from August 2023 (England) | £25,000/year | 9% | 40 years |
UK student loans work differently from commercial loans. You only repay when your income exceeds the threshold for your plan — and repayments are automatically deducted from your salary via PAYE, just like Income Tax and National Insurance. If your income falls below the threshold, repayments stop automatically.
Because repayments are income-based rather than loan-based, many graduates — particularly those on Plan 2 — will never fully repay their loan before it is written off. The key question is not always "how do I pay it off faster?" but rather "will I pay it off at all, and if not, does that matter?"
For most Plan 2 graduates, voluntary overpayments are not recommended unless you are certain you will repay the full loan before the write-off date. If your projected repayments show the loan being written off before you clear it, any overpayments are effectively wasted — you would have paid more than necessary. Use our calculator to see your projected payoff or write-off date before making any overpayments.
Plan 1 interest is set at the lower of RPI or the Bank of England base rate plus 1%. Plan 2 interest is RPI plus up to 3% (depending on income) while studying, and between RPI and RPI+3% once you graduate. Plan 5 interest is RPI only. Rates are updated each September based on the previous March RPI figure.
If you move abroad, you are still required to make repayments based on your income, but you must self-report your earnings to the Student Loans Company. The repayment threshold varies by country based on cost of living comparisons. Failure to report can result in a fixed repayment amount being set by SLC.
Yes. Your employer deducts student loan repayments directly from your salary via PAYE, in the same way as Income Tax and National Insurance. Your employer will know which plan you are on (from your P45 or starter checklist) but not the balance of your loan.