UK Student Loan FAQ
Everything you need to know about student loan repayments, thresholds, interest rates, and write-off rules.
Repayment Thresholds 2024/25
You only repay your student loan when your income exceeds these thresholds:
| Plan | Annual Threshold | Monthly | Rate | Write-off |
|---|---|---|---|---|
| Plan 1 | £24,990 | £2,082 | 9% | 25 years or age 65 |
| Plan 2 | £27,295 | £2,274 | 9% | 30 years |
| Plan 4 | £31,395 | £2,616 | 9% | 30 years |
| Plan 5 | £25,000 | £2,083 | 9% | 40 years |
| Postgraduate | £21,000 | £1,750 | 6% | 30 years |
Source: GOV.UK
Interest Rates
| Plan | Interest Calculation | Current Rate |
|---|---|---|
| Plan 1 | Lower of RPI or BoE base rate + 1% | 5.5% |
| Plan 2 | RPI + 0-3% (income-based) | 7.3% (capped) |
| Plan 4 | Lower of RPI or BoE base rate + 1% | 5.5% |
| Plan 5 | RPI only | 4.3% |
| Postgraduate | RPI + 3% | 7.3% |
Which Plan Am I On?
- Plan 1: Started undergraduate course in England/Wales before September 2012
- Plan 2: Started undergraduate course in England/Wales between September 2012 and July 2023
- Plan 4: Studied in Scotland from 1998 onwards
- Plan 5: Started undergraduate course in England from August 2023
- Postgraduate: Received Master's loan from 2016/17 or Doctoral loan from 2018/19
Check your payslip, P60, or SLC account to confirm.
When Are Loans Written Off?
- Plan 1: 25 years after first due to repay, or age 65 (whichever is earlier)
- Plan 2: 30 years after the April following graduation
- Plan 4: 30 years after the April following graduation
- Plan 5: 40 years after the April following graduation
- Postgraduate: 30 years after the April following graduation
Any remaining balance is cancelled and you owe nothing further.
Self-Employed Repayments
If you're self-employed:
- Repayments are calculated via Self Assessment
- Same rates apply (9% undergraduate, 6% postgraduate)
- Payments made with your tax bill by 31 January
- Enter your annual profit as your income in our calculator
Salary Sacrifice
Salary sacrifice arrangements reduce your student loan repayments:
- Pension contributions via salary sacrifice reduce your gross pay
- Cycle-to-work schemes work the same way
- Repayments are calculated on your reduced salary
Enter your salary after salary sacrifice in our calculator for accurate results.
Multiple Loans
You can have both undergraduate and Postgraduate loans:
- Each loan has its own threshold
- You make separate repayments on each
- Maximum combined rate: 15% (9% + 6%) of income above thresholds
The Threshold Freeze
The Plan 2 threshold has been frozen at £27,295 since 2021 and remains frozen until at least 2027. This means:
- As wages rise, more of your income is above the threshold
- You effectively pay more each year
- Use our calculator to see exactly how much extra you'll pay