Student loan repayment explained: when and how much you pay
Quick answer: You only repay a student loan once your income is over the threshold for your plan, at 9% of income above it (6% for postgraduate loans). It is collected automatically through payroll and written off after a set number of years.
UK student loans work nothing like normal debt: repayments depend on what you earn, not what you borrowed, and stop automatically if your income drops. This guide explains the plan types, thresholds and when the balance is written off.
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Primary source: https://www.gov.uk/repaying-your-student-loan
It works like a graduate contribution
Your repayment is based on income, not the size of your loan. You pay 9% of everything you earn above your plan's threshold (6% for a postgraduate loan), so a higher salary means higher repayments and a lower salary means lower or no repayments.
Because it is collected through payroll alongside tax and National Insurance, most people never have to manage payments themselves. If you are self-employed, it is collected through Self Assessment.
Interest and write-off
Interest is added to the balance, but because repayments are income-based, many graduates never repay the full amount before it is written off. The write-off period and exact thresholds depend on which plan you are on (for example Plan 2 or the newer Plan 5 for recent English students).
Overpaying voluntarily only benefits higher earners likely to clear the loan in full before write-off — for most people the loan behaves more like a payroll deduction than a debt to clear early.
Common questions
Do I have to repay if I don't earn much?
No. You only repay when your income is above your plan's threshold, and repayments stop automatically if your income drops below it.
Should I pay off my student loan early?
Usually only if you are a high earner certain to repay it in full before write-off. For most graduates, voluntary overpayments give no benefit because the balance is written off eventually.