UK Student Loan Write-Off Rules: When Is Your Loan Cancelled?

Write-Off Periods by Plan Type

Plan 1 Write-Off Rules

Plan 1 has the most favourable write-off terms:

• Written off 25 years after the April you were first due to repay
• Or written off when you turn 65 — whichever comes first
• Also written off if you die or become permanently disabled

Plan 2 Write-Off Rules

Plan 2 loans are written off 30 years after the April following your graduation:

• The clock starts the April after you finish or leave your course
• It doesn't matter whether you've been repaying or not
• Part-time students: 30 years from April after your course ends

What about the threshold freeze?

The Plan 2 threshold freeze doesn't change when your loan is written off. However, because you repay more each year due to the frozen threshold, you may repay more of your loan before write-off — or potentially repay in full when you otherwise wouldn't have.

Use our UK student loan calculator to see whether you're likely to repay in full or reach write-off.

Plan 4 Write-Off Rules

Plan 4 (Scottish) loans follow similar rules to Plan 2:

• Written off 30 years after the April following graduation
• For older Plan 4 loans: may be written off at age 65 instead
• Check your specific terms with SAAS (Student Awards Agency Scotland)

Plan 5 Write-Off Rules

Plan 5 has the longest write-off period:

• Written off 40 years after the April following graduation
• Applies to students starting undergraduate courses in England from August 2023
• This longer period was introduced alongside lower interest rates (RPI only)

Is 40 years worse than 30?

Not necessarily. Plan 5's design means:

• Lower interest (RPI only vs RPI+3%)
• More time to repay, so monthly payments may feel smaller relative to lifetime earnings
• But you're potentially repaying for longer if you're a higher earner

Will Your Loan Be Written Off?

Whether your loan is written off or repaid in full depends on:

Factors that make write-off more likely

• Lower lifetime earnings
• Career breaks (parenting, illness, redundancy)
• Part-time work
• Larger loan balance
• Time spent earning below the threshold

Factors that make full repayment more likely

• Higher lifetime earnings
• Continuous full-time employment
• Rapid salary growth early in career
• Smaller initial loan balance
• Voluntary overpayments

The statistics

According to government estimates:

• Plan 2: Around 70-80% of graduates are expected to have some loan written off
• Plan 5: Expected to be similar, though projections vary

What Happens at Write-Off

When your loan is written off:

• Any remaining balance is cancelled — you owe nothing more
• No tax is due on the written-off amount
• It doesn't affect your credit score (student loans don't appear on credit files anyway)
• You don't need to do anything — it happens automatically

Multiple loans

If you have multiple loans (e.g., Plan 2 + Postgraduate), each has its own write-off date based on when you finished that particular course.

Early Write-Off Circumstances

Your loan is written off earlier if:

• Death: The loan is cancelled immediately
• Permanent disability: You may apply to have your loan written off if you're permanently unfit for work
• Plan 1 age 65: Written off when you turn 65, even if 25 years hasn't passed

Should You Try to Repay Early?

This depends on whether you're likely to repay in full anyway:

If your loan will be written off

Voluntary overpayments are generally not worthwhile. You'd be paying extra towards a balance that would have been cancelled anyway. Your total lifetime payments are determined by your income, not your balance.

If you'll repay in full

Overpayments reduce your interest costs and total repayment. This makes sense for higher earners who are certain to clear their loan before write-off.

Use our UK student loan calculator to see your projected outcome and whether overpayments make sense for you.

Next Steps

• Check your write-off date with the UK Student Loan Calculator
• See current repayment thresholds
• Understand how interest works
• Find out which plan you're on
• Postgraduate loan guide