Student loans: what plan am I on, and when do I repay?

The thresholds and the small print depend entirely on which plan you're on, which depends on where you lived and when you started your course. Let's find your plan first.

Which plan am I on?

There are five repayment plans. Your plan is set by where you lived when you started and the date you began the course — you can be on more than one (for example a Plan 2 undergraduate loan and a Postgraduate Loan).

How repayment actually works

• It's taken automatically. If you're employed, repayments come off through PAYE alongside tax and National Insurance — you'll see "Student Loan" on your payslip. If you're self-employed, they're collected through Self Assessment.
• Only on income over the threshold. A Plan 5 graduate earning £30,000 repays 9% of (£30,000 − £25,000) = 9% of £5,000 = £450 a year (about £37.50 a month) — regardless of how big the loan is.
• It stops if your income drops. A pay cut, going part-time, a career break or unemployment that takes you under the threshold means repayments pause automatically.
• Two loans = two repayments. If you have an undergraduate plan and a Postgraduate Loan, you pay both at the same time (9% + 6% on the income over each threshold).
• It's written off in the end. Whatever's left after your plan's write-off period (25–40 years) or on death is cancelled — you can't be chased for it.

What about interest?

Interest is added to the balance while you study and after. The exact rate is set by the government and changes over time — broadly it's linked to inflation (RPI) for older plans, with Plan 2 historically charging up to RPI plus 3% depending on income, while Plan 5 interest is capped at the lower of RPI or a market rate. Because rates change regularly, don't rely on a fixed percentage — check the current rate on GOV.UK. For many borrowers, especially on Plan 2 and Plan 5, the loan is written off before interest is ever fully repaid, so the headline interest rate matters less than people fear.

When is it written off — and should I pay it early?

Anything outstanding is cancelled after the write-off period for your plan (see the table above), or if you die. You never repay it indefinitely.

Does it hurt my credit or mortgage?

This is one of the most common worries — and the news is mostly reassuring:

• A UK student loan does not appear on your credit file and does not affect your credit score. It's not a black mark and it won't show up when a lender checks your credit.
• It won't stop a mortgage application on its own. The loan itself isn't counted as a debt against you.
• But a mortgage lender will see the monthly student loan deduction on your payslip and counts it as committed expenditure when working out how much you can afford to borrow — so it can slightly reduce the size of mortgage offered, in the same way as any regular outgoing.

In short: it lowers your monthly take-home pay while you earn over the threshold, but it's not a debt that damages your creditworthiness.

Applying for student finance

If you're about to study (or already studying), there are usually two loans:

1. Apply through the right body for where you live — Student Finance England, SAAS (Scotland), Student Finance Wales, or Student Finance NI.
2. Apply early. You don't need a confirmed place to apply — put down your first-choice course and change it later if needed. There's a deadline each funding year (often late spring/early summer for the autumn start), so apply as soon as applications open.
3. Have your details ready — your National Insurance number, passport/ID, course and university details, and household income figures (your parents or partner may need to submit theirs).
4. Don't be put off by the loan. Because repayment is income-contingent and written off in the end, student finance is what lets most people afford to study — even if you're unsure, it's worth applying.

Beyond loans, check for grants and bursaries that you never repay — university hardship funds, NHS bursaries for healthcare courses, the Disabled Students' Allowance, and Childcare Grant for student parents. Your university's student services and GOV.UK list what's available.

It works differently across the UK

Do this right now

Whether you're repaying or about to apply, here's the calm, free order:

For free, independent money guidance, MoneyHelper (the government-backed service) explains student loans in plain English, and Citizens Advice can help if your repayments or refunds are tangled.