FAQs: borrowers questions and answers: amount of repayments: how much will I have to pay?
The amount that you repay depends upon how much you earn.
At present, repayments are at a rate of 9 per cent of income over
- £17,495 per annum for plan 1 and
- £21,000 per annum for plan 2.
Your employer will make deductions if you earn more than
- £336 for plan 1 or
- £403 for plan 2
per week for a weekly pay period or
- £1457 for plan 1 or
- £1750 for plan 2
per month for a monthly pay period.
- do not know which plan type you are repaying you can contact the Student Loans Company (0300 100 0611)
- are repaying plan 1 and plan 2 at the same time then your employer will use plan 1.
|1.||If the borrower requires further information they should be asked to contact the Student Loans Company on 0300 100 0611.|
|2.||The weekly and monthly limit, below which no loan repayments need be made, is not always an exact divisible the annual threshold. It is possible that an employer or borrower may query this.|
|The apparent discrepancy is because Student Loan deductions are always rounded down. A borrower could therefore earn slightly more than the strict weekly threshold before making payments because the resulting liability is less than £1.|
|Payroll software and the Student Loan Deduction Tables have been devised to take the rounding - down factor into account.|