How much you repay depends on your income - the amount you earn (including things like bonuses and overtime) before tax and other deductions. The amount you owe (which is a total of what you’ve borrowed plus interest) has no impact on how much you repay each year. You’ll repay a percentage of your income over the income threshold for your type of loan. The income thresholds are different for each plan type, and depend on how often you get paid. Plan type Yearly income threshold Monthly income threshold Weekly income threshold Plan 1 £26,900 £2,241 £517 Plan 2 £29,385 £2,448 £565 Plan 4 £33,795 £2,816 £649 Plan 5 £25,000 £2,083 £480 Postgraduate Loan £21,000 £1,750 £403 You’ll repay either: 9% of your income over the threshold if you’re on Plan 1, 2, 4 or 5 6% of your income over the threshold if you’re on a Postgraduate Loan plan The examples show how much you’d repay depending on your income and plan type: Example You’re on Plan 1 and have an income of £33,000 a year, meaning you get paid £2,750 each month. Calculation: £2,750 – £2,241 (your income minus the Plan 1 threshold) = £509 9% of £509 = £45.81 This means the amount you’d repay each month would be £45. Example You’re on Plan 4 and have an income of £36,000 a year, meaning you get paid £3,000 each month. Calculation: £3,000 – £2,816 (your income minus the Plan 4 threshold) = £184 9% of £184 = £16.56 This means the amount you’d repay each month would be £16. If your income changes during the year You’ll make a repayment if your income goes over the weekly or monthly threshold for your plan (for example, if you’re paid a bonus or overtime). You can ask for a refund at the end of the tax year if your annual income is less than the yearly threshold for your plan. Interest How much interest you’re charged depends on which plan you’re on. You’re currently charged: 4.1% if you’re on Plan 1 4.1% if you’re on Plan 4 4.1% if you’re on Plan 5 6% if you’re on a Postgraduate Loan plan Interest is still added (‘applied’) to the amount you owe even if you’re not working or your income is below the repayment threshold. You can see how interest has been applied in your annual statement. This is normally available in your online repayment account by the end of August. Interest if you’re on Plan 2 Plan 2 interest is a Variable Interest Rate ( VIR ). This means the interest you’re charged can change depending on your circumstances. While you’re studying You’re usually charged a set interest rate of the Retail Price Index ( RPI ) plus 3%, but there’s currently a limit (or ‘cap’) of 6%. You’re charged this rate from the day your first payment is made to you, or to your university or college. The interest rate you’re charged will change either: on 6 April after you finish or leave your course on 6 April 4 years after the course started, if you’re studying part-time and your course is longer than 4 years After you finish or leave your course You’ll be charged a VIR based on your annual income. This is usually the RPI plus up to 3%, but there’s currently a limit (or ‘cap’) of 6%. Annual income Interest rate £29,385 or less 4.1% £29,386 to £52,884 4.1%, plus up to 1.9% £52,885 or more 6% You can find out more about: how Plan 1 interest is calculated and interest rates for previous years how Plan 2 interest is calculated and interest rates for previous years how Plan 4 interest is calculated and interest rates for previous years how Plan 5 interest is calculated and interest rates for previous years how Postgraduate Loan interest is calculated and interest rates for previous years If you’re on more than one plan type and do not have a Postgraduate Loan You’ll repay 9% of your income over the lowest threshold out of the plan types you have. You’ll only have a single repayment taken each time you get paid, even if you’re paying towards more than one loan. Example You’re on Plan 1 and Plan 2. You have an income of £38,400 a year, meaning you get paid £3,200 a month. £3,200 is over the Plan 1 monthly threshold of £2,241 and the Plan 2 monthly threshold of £2,448. You’ll repay 9% of your income over £2,241 a month because that’s the lowest threshold out of the plan types you have. Calculation: £3,200 - £2,241 (your income minus the lowest threshold) = £959 9% of £959 = £86.31 This means the amount you’d repay each month would be £86. When your repayment gets split between loans There is a limit (or ‘cap’) to the amount you can repay each month towards the plan type with the lowest threshold. The difference between the thresholds for each plan determines what the cap will be. If you go over the cap, the rest of your repayment will go towards your other loans. Example You’re on Plan 1 and Plan 2. You repay £86 per month. The cap will apply to your Plan 1 loan because it has the lowest threshold. Anything you repay over the cap will then go towards your Plan 2 loan. Calculation: £2,448 - £2,241 (Plan 2 threshold minus Plan 1 threshold) = £207 9% (the Plan 1 rate) of £200 = £18.63 The monthly payment cap for your Plan 1 loan is £18. £18 of your £86 repayment will go towards your Plan 1 loan and the remaining £68 will go towards your Plan 2 loan. If you’re on more than one plan type and have a Postgraduate Loan You’ll repay 6% of your income over the Postgraduate Loan threshold (£21,000 a year) and 9% of your income over the lowest threshold for any other plan types you have. Example You have a Postgraduate Loan and a Plan 2 loan and have an income of £30,000 a year, meaning you get paid £2,500 each month. This is over the Postgraduate Loan threshold of £1,750 and the Plan 2 threshold of £2,448. Calculation: £2,500 – £1,750 (your income minus the Postgraduate Loan threshold) = £750 6% of £750 = £45 £2,500 – £2,448 (your income minus the Plan 2 threshold) = £52 9% of £52 = £4.68 This means the amount you’d repay each month would be £49. If you’re employed and have more than one employer You’ll only make repayments from jobs where you’re paid over the threshold for your plan type, not your combined income. Example You have a Plan 1 loan and you have 2 jobs. Before tax and other deductions, you’re paid £1,000 a month from one job and £800 a month for the other. You will not have to make repayments because neither salary is above the £2,241 a month threshold. Example You have a Plan 2 loan and you have 2 jobs. Before tax and other deductions, you’re paid £2,500 a month from one job and £500 a month for the other. You will only make repayments on the income from the job that pays you £2,500 a month because it’s above the £2,448 threshold. If you’re self-employed or complete a Self Assessment tax return for another reason HM Revenue and Customs ( HMRC ) will work out how much you repay each year from your Self Assessment tax return. Your repayments will be based on your income for the whole year. If you’re also employed How much you repay depends on your combined income for the whole year. Example You have a Plan 1 loan and you’re both employed and self-employed. You have an income of £32,000 a year from your self-employment and £10,000 a year from a job with an employer. Your Self Assessment tax return will show that your combined income is £42,000. This is over the yearly threshold for Plan 1. Calculation: £42,000 - £26,900 (your income minus the Plan 1 threshold) = £15,100 9% of £15,100 = £1,359 This means the amount you’d repay each year would be £1,359. If you’ve already made repayments from a salary, HMRC will deduct them from the amount you have to repay.

Your repayments will be taken out of your salary at the same time as tax and National Insurance if you’re an employee. Your payslips will show how much has been deducted. You should check your employer has you on the correct repayment plan . You start repaying when your income is more than the minimum amount . There’s no penalty if you make extra repayments to pay some or all of your loan off early. If you’re self-employed or complete a Self Assessment tax return for another reason HM Revenue and Customs ( HMRC ) will work out how much you pay from your Self Assessment tax return . You pay at the same time as you pay your tax . If you’re also employed If you earn over the minimum amount, your employer will deduct loan repayments from your salary. Check your payslips or P60 to see how much of your loan you’ve paid off during the tax year. You’ll need to include this information when you fill in your tax return. The tax year runs from 6 April to 5 April the following year. If you also get income from a pension HMRC will use your total annual income when calculating student loan repayments. This includes any income you get from: a workplace pension a private pension the State Pension You’ll only make student loan repayments if your total annual income, including your pension, is above the repayment threshold . If you leave the UK for more than 3 months You must update your employment details to let the Student Loans Company ( SLC ) know you have left the UK. You will need to continue to repay your loan unless you provide evidence that your income is below the threshold. If you do not update your details, you could build up arrears on your account. You’ll have to repay these even if your income is below the threshold for your repayment plan. You will need to repay any arrears separately to your monthly repayments. To make sure you’re repaying the correct amount, you’ll need to update your employment details each year. Repayment thresholds for different countries The rules for repayment are the same as in the UK, apart from different repayment thresholds for each country. If you’re abroad, your repayment amounts are based on: the minimum amount under Plan 1 for that country the minimum amount under Plan 2 for that country the minimum amount under Plan 4 for that country the minimum amount under Plan 5 for that country the minimum amount under the Postgraduate Loan plan for that country Once SLC have told you how much you need to repay, you can make repayments: through your online account by International Bank Transfer (IBAN) Online account Sign in to your online account to: make a one-off or set up recurring card payments using an international debit card set up a Direct Debit You can also use your online account to update your contact details and make extra repayments . International Bank Transfer To transfer money from a non-UK bank account, use the following details: IBAN: GB37NWBK60708010027254 SWIFT: NWBKGB2L NatWest Government Banking Team NatWest Customer Service Centre Brampton Road Newcastle-under-Lyme Staffordshire ST5 0QX Use one of these as your reference: customer reference number ( CRN ) grant reference number (if it’s for a grant repayment) If you return to the UK after more than 3 months away You must update your employment details when you return to the UK after more than 3 months away. If you do not, you’ll continue repaying your loan at the rate for the country you’ve been living in. That could mean: paying more than you need to you’re charged a higher rate of interest Checking your repayments You can check your repayments and balance in your: annual statements from SLC online account If your contact details change, you must update them in your online account. Avoid paying more than you owe If you have nearly repaid your loan, you may be able to make your final repayments by Direct Debit instead of from your salary. This makes sure your employer will not accidentally take more than you owe. SLC will contact you in the final year of your loan repayments to let you know how to set up a Direct Debit. Keep your contact details up to date in your online account .

You can ask for a refund if: you’ve paid more than the total amount you owe your annual income was below the threshold you started making repayments before you needed to you’ve repaid more than you need to because your employer had you on the wrong repayment plan You cannot get a refund for extra repayments. If you pay back more than you owe HM Revenue and Customs (HMRC) will tell your employer to stop taking repayments from your salary when you have repaid your loan in full. It can take around 4 weeks for salary deductions to stop. This means you may pay back more than you owe. You can avoid paying more than you owe by changing your payments to Direct Debit in the final year of your repayments. Keep your contact details up to date in your online account so SLC can let you know how to set this up. If you have paid too much the Student Loans Company ( SLC ) will try to: contact you to tell you how to get a refund refund you automatically (this will appear in your bank account as ‘ SLC Receipts’) You can check your loan balance in your online account . If you’ve overpaid and have not heard from SLC you can ask them for a refund. If your annual income was below the threshold Your income is the amount you earn (including things like bonuses and overtime) before tax and other deductions. You can ask for a refund if you made repayments but your income over the whole tax year (6 April to 5 April the following year) was less than: £26,900 a year for Plan 1 £29,385 a year for Plan 2 £33,795 a year for Plan 4 £21,000 a year for Postgraduate Loan If your annual salary is less than this, your employer may still have deducted repayments. For example, if you were paid a bonus that put you over the monthly threshold for your plan, they would deduct a repayment for that month. You will not get a refund for any repayments until after SLC have confirmed your annual income with HMRC. This will not happen until after the end of the tax year. You can only ask for a refund for tax years that have ended. If you’re repaying a combination of Plan 1, Plan 2 and Plan 4 loans, you can only get a refund if your income was less than the lowest threshold. Example You’re repaying a Plan 1 and Plan 2 loan. The Plan 1 threshold is £26,900 a year. The Plan 2 threshold is £29,385 a year. The Plan 1 threshold is lower. This means you can only get a refund if your income was less than the Plan 1 threshold (£26,900 a year). Check which repayment plan you’re on if you’re not sure. You can check previous thresholds if you ask about a refund on repayments made before this tax year. If you started repaying before you needed to If a deduction is taken from your salary before you’re due to start repaying , you can ask for a refund. If your employer had you on the wrong repayment plan You can get a refund if you’re on Plan 2 or Plan 4 but your employer had you on another plan. Check your employer has you on the correct repayment plan . How to ask for a refund If your annual income was below the threshold for the previous tax year Sign into your student loan repayment account and ask for a refund. If you need a refund for any other reason Contact the Student Loans Company with your customer reference number ( CRN ).

When your student loan gets written off or cancelled

When your student loan gets written off depends on which repayment plan you’re on . If you’re a full-time student from Wales, you may be able to get £1,500 of your Maintenance Loan written off . When Plan 1 loans get written off When your Plan 1 loan gets written off depends on when you were paid the first loan for your course. If you were paid the first loan on or after 1 September 2006 The loans for your course will be written off 25 years after the April you were first due to repay. If you were paid the first loan before 1 September 2006 The loans for your course will be written off when you’re 65. When Plan 2 loans get written off Plan 2 loans are written off 30 years after the April you were first due to repay. When Plan 4 loans get written off When your Plan 4 loan gets written off depends on when you were paid the first loan for your course. If you were paid the first loan on or after 1 August 2007 The loans for your course will be written off 30 years after the April you were first due to repay. If you were paid the first loan before 1 August 2007 The loans for your course will be written off when you’re 65, or 30 years after the April you were first due to repay – whichever comes first. When Plan 5 loans get written off Plan 5 loans are written off 40 years after the April you were first due to repay. When Postgraduate Loans get written off If you’re a student from England or Wales, your Postgraduate Loan will be written off 30 years after the April you were first due to repay. If you’re a postgraduate student from Northern Ireland, you’re on Plan 1. If you’re a postgraduate student from Scotland, you’re on Plan 4. If someone with a student loan dies The Student Loans Company ( SLC ) will cancel the person’s student loan. You need to let SLC know that the person has died and provide evidence (for example an original death certificate), as well as the person’s customer reference number ( CRN ). If you can no longer work because of illness or disability SLC may be able to cancel your loan if you claim certain disability benefits . You’ll need to provide evidence (for example a letter from the benefits agency) and your customer reference number ( CRN ).

Repaying your student loan

Q: Update your employment details

You need to update your details if you: leave the UK for more than 3 months (for example, you go travelling or move overseas) return to the UK after more than 3 months away get a letter or email from the Student Loans Company ( SLC ) asking you to update your employment details SLC use these details to work out if you should be repaying your loan. You might be charged a higher interest rate or build up debt (‘accrue arrears’) if you do not update your details. Start now

Overview

You need to pay back:

Tuition Fee Loans
Maintenance Loans for living costs
postgraduate loans - for example, a Master’s Loan or Doctoral Loan

You do not need to pay back other student finance, for example grants and bursaries. You will have to repay any overpayments if you receive more of any type of student finance than you’re entitled to.

You still have to repay your student loan if you leave your course early.

This guide is also available in Welsh (Cymraeg).

When you start repaying your loan and how much you pay depends on which repayment plan you’re on.

Keep your contact details up to date in your online account so that you can get messages about your loan.

How to repay

How you repay your loan depends on whether you’re:

employed
self-employed or need to complete a Self Assessment tax return for another reason

You can make extra repayments in your online account and by card, bank transfer or cheque.

Keep your payslips and your P60 for your records - you’ll need them if you want to get a refund.

If you leave the UK for more than 3 months

You must tell the Student Loans Company (SLC) if you’re leaving the UK for more than 3 months - for example, if you go travelling or if you move overseas.

Tell SLC by updating your employment details.

You’ll be expected to keep repaying your loan unless you can give proof (for example, a recent bank statement) that your overseas income is below the threshold.

If you do not tell SLC, you could build up debt (‘accrue arrears’) on your account. You’ll need to pay arrears back on top of your regular repayments.

If you return to the UK after more than 3 months away

You must update your employment details when you return to the UK after more than 3 months away.

If you do not, you’ll continue repaying your loan at the rate for the country you’ve been living in. That could mean:

paying more than you need to
you’re charged a higher rate of interest

View a printable version of the whole guide

Step 1 Get your National Insurance number
You'll usually need your National Insurance number when you start your new job.
1. Find your National Insurance number
1. Apply for a National Insurance number if you do not already have one
Step 2 Accept the job offer
The offer might be ‘conditional’ or ‘provisional’, which means you may need to give further details to your new employer or pass pre-employment checks.
1. Find out about your rights when accepting a job offer
Step 3 Share your details for any employer checks
Give your new employer what they need to complete any pre-employment checks.
1. Find out what checks your employer can make
1. Find out how to prove your right to work
1. Find out about criminal record checks
Step 4 Review your employment contract
Your new employer should give you an employment contract. Check the terms before you agree to it.
1. Find out about employment contracts
and If you're leaving a job, hand in your notice
Tell your current employer that you’re going to leave and when your last day will be. This is known as handing in your notice.
1. Find out how to hand in your notice
When you hand in your notice, ask your employer when you’ll get your P45.
1. Find out about the P45
Step 5 Prepare your personal information for your first day
To get paid, you’ll need to give your new employer:
- your National Insurance number
- your bank details
- proof of your identity
- what student loan repayment plan you’re on, if you have one
- details of what benefits you get, if any
Step 6 Give your P45 to your new employer
Your new employer will use your P45 to work out how much tax to take from your pay.
1. Find out about the P45
or If you do not have a P45, fill in the starter checklist
Use the starter checklist to give your employer details they need to work out your pay and tax.
1. Fill in the starter checklist
Step 7 Check your first payslip
Your employer must give you a payslip on or before payday.
1. Find out what should be on your payslip
It’s your responsibility to make sure you’re paying the right amount of tax.
1. Check if the tax on your payslip is correct
If you think the tax is wrong, your tax code may be incorrect.
1. Find out what to do if you think your tax code is wrong

Repaying your student loan

Overview

How to repay

If you leave the UK for more than 3 months

If you return to the UK after more than 3 months away

Step 1 Get your National Insurance number

Step 2 Accept the job offer

Step 4 Review your employment contract

and If you're leaving a job, hand in your notice

Step 5 Prepare your personal information for your first day

Step 6 Give your P45 to your new employer

or If you do not have a P45, fill in the starter checklist

Step 7 Check your first payslip

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Help us improve GOV.UK

Help us improve GOV.UK

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Repaying your student loan

Overview

How to repay

If you leave the UK for more than 3 months

If you return to the UK after more than 3 months away

Sign in

This page is Part of Start a new job: step by step

Step 1: Get your National Insurance number

Step 2: Accept the job offer

Step 3: Share your details for any employer checks

Step 4: Review your employment contract

and If you're leaving a job, hand in your notice

Step 5: Prepare your personal information for your first day

Step 6: Give your P45 to your new employer

or If you do not have a P45, fill in the starter checklist

Step 7: Check your first payslip

Is this page useful?

Help us improve GOV.UK

Help us improve GOV.UK

Step 1 Get your National Insurance number

Step 2 Accept the job offer

Step 3 Share your details for any employer checks

Step 4 Review your employment contract

Step 5 Prepare your personal information for your first day

Step 6 Give your P45 to your new employer

Step 7 Check your first payslip