When do you start repaying your student loan?
You only start repaying your student loan when your income goes above a certain amount. This depends on which student loan plan you’re on, not how much you borrowed.
If you earn below the repayment threshold for your plan, you don’t repay anything, even though the loan still exists.
Which student loan plan are you on?
Your repayment start point depends entirely on your loan plan:
- Plan 1
- Plan 2
- Plan 4
- Plan 5
- Postgraduate Loan
If you’re not sure which plan you’re on, it’s usually based on when you started your course and where you lived, not your university.
General rule (applies to everyone)
You start repaying your student loan when:
- You finish or leave your course AND
- Your income goes above your plan’s repayment threshold
Repayments are:
- Taken automatically through PAYE if you’re employed
- Collected through Self Assessment if you’re self-employed
When you start repaying by plan
If you’re on Plan 1
You start repaying once your income goes above the Plan 1 threshold.
- Repayments are 9% of earnings above the threshold
- Taken automatically from your salary
Example: James (Plan 1, PAYE employee)
James earns £38,000 a year. Because his income is above the Plan 1 threshold, a small amount is deducted from his payslip each month. He doesn’t need to contact the Student Loans Company — it happens automatically.
If you’re on Plan 2
Plan 2 loans usually apply if you started university in England after 2012.
- You only repay once your income goes above the Plan 2 threshold
- Repayments are collected through PAYE
Example: Emma (Plan 2, new graduate)
Emma earns £27,000 a year in her first graduate job. Because her income is only slightly above the Plan 2 threshold, she repays a small amount each month — often less than people expect.
If you’re on Plan 4
Plan 4 loans usually apply if you lived in Scotland.
- Repayments start when income exceeds the Plan 4 threshold
- Collected automatically through PAYE
Example: Mark (Plan 4, part-time worker)
Mark works part-time and earns below the Plan 4 threshold. Even though he has a student loan, he doesn’t make any repayments while his income stays low.
If you’re on Plan 5
Plan 5 applies to newer undergraduate loans.
- Repayment rules are similar to other plans
- Thresholds and write-off periods are different
Example: Sarah (Plan 5, early career)
Sarah has a Plan 5 loan and earns just under the repayment threshold. She won’t start repaying until her income increases.
If you have a Postgraduate Loan
Postgraduate loans work slightly differently:
- Repayments are in addition to undergraduate loans
- Collected at the same time
Example: Tom (Undergraduate + Postgraduate loan)
Tom has both a Plan 2 loan and a postgraduate loan. Once his income is high enough, repayments for both are deducted automatically from his salary.
What if you’re not working?
If you’re not working or earning below the repayment threshold:
- You do not make repayments
- You don’t need to inform anyone
- Nothing is “going wrong”
Example: Mark (career break)
Mark took time off work after university. Because he’s earning below the threshold, he doesn’t repay anything during this period.
Where this information comes from
Student loan rules are set by the government and administered by the Student Loans Company. Mortgage affordability assessments are based on income and outgoings, not student loan balances. Official guidance is available on GOV.UK.
What happens next?
Starting repayment is just one part of how student loans work. You might also want to read:
