Repaying your student loan

How much you repay

You pay back 9% of your income over the minimum amount of:

  • £18,330 for Plan 1 - this amount changes on 6 April every year
  • £25,000 for Plan 2

Interest starts being added to your loan from when you get your first payment. How much you pay depends on which plan you’re on.

Plan 1

You’re on Plan 1 if you’re:

  • an English or Welsh student who started your undergraduate course before 1 September 2012
  • a Scottish or Northern Irish student
Your income per year Monthly repayments
£18,330 and under £0
£20,000 £12
£25,000 £50
£30,000 £87
£50,000 £237

Interest on Plan 1

You currently pay interest of 1.5% on Plan 1. You can find interest rates for previous years.

Plan 2

You’re on Plan 2 if you’re an English or Welsh student who started your undergraduate course on or after 1 September 2012.

Your income per year Monthly repayments
£25,000 and under £0
£30,000 £37
£35,000 £75
£50,000 £187 


Interest on Plan 2

While you’re studying, interest is inflation plus 3%.

Once you’ve left your course, your interest rate depends on your income in the previous tax year.

If you’re self-employed, your income is the total income amount on your Self-Assessment form.

If you’re an employee, your income is your taxable pay:

  • plus any pension contributions
  • minus any benefits you get from your employer that are taxed through payroll (ask your employer if you’re not sure)

If you have more than one job in a year, your interest rate will be based on your combined income from all your jobs.

Income Interest rate
£25,000 or less Inflation
£25,000 to £45,000 Inflation plus up to 3%
Over £45,000 Inflation plus 3%

The Student Loans Company has more information on how they calculate interest.

If you have Plan 1 and Plan 2 loans

You still pay back 9% of your income over £18,330 a year.

If you earn between £18,330 and £25,000, your payments only go towards your Plan 1 loan.

If you earn over £25,000, your 9% payments go towards both your loans.

If you have 2 or more jobs

Your employers will deduct repayments from your salary - but only for the jobs where you earn over the minimum amount.

HMRC may send you a tax return to make a self assessment of the repayments you owe for the whole year. You’ll need to pay 9% of all your income over the threshold - but any repayments you’ve already made from your salary will be deducted from this.

Keep all your payslips and P60 - you’ll need them if you claim a refund.

You might end up paying your loan back sooner if your income from savings and investments is over £2,000 a year.