Repay your student loan
If you take out a student loan when you're at college or university you have to repay it.
You become eligible to repay your student loan the April after you leave college or university. But you will not start making payments until you earn more than a certain amount of money, known as a 'salary threshold'.
The salary threshold is currently £31,395.
You can check your student loan balance by signing in to your student loan repayment account.
How you pay it back depends on whether you work for someone else (employed) or work for yourself (self-employed).
If you're employed
If you took out your student loan on or after 1 September 1998, repayments will be taken from your wages. You'll see the repayments on your wage slip.
You will make repayments if your annual salary is over the current threshold of £31,395.
You must speak to your employer if your income is over the threshold and you aren't paying student loan payments.
If your salary drops below the salary threshold your payments will be stopped. They will only start again when you go over the salary threshold.
Find out more about repaying your student loan on GOV.UK.
If you're self-employed
Your student loan repayments will be done through your Self Assessment tax return.
When you're filling in your Self Assessment tax return tick the box saying you have a student loan.
You'll have to budget for student loan payments when you submit your Self Assessment tax return and pay HM Revenue and Customs (HMRC) at the end of January.
Keep your payslips, P60s and Self Assessment tax forms to track your payments. You may need a refund.
Find out more about repaying your student loan on GOV.UK.
This information applies to Student Loans Company (SLC) loans. If you took out a student loan between 1990 and 1 September 1998, SLC can help you find the right organisation to contact.
If you're unemployed
It is unlikely you will meet the salary threshold when you’re unemployed. In this case, you will not make any repayments.
You may choose to make voluntary repayments, but you do not have to. Find out how to make extra repayments to your student loan on GOV.UK.
What you'll pay
It depends on what country you lived in when you applied for student funding.
If you’re a Scottish student who started an undergraduate or postgraduate course anywhere in the UK on or after 1 September 1998, you’ll be on repayment Plan 4.
This means you'll pay 9% of the income you earn over the threshold to the Student Loan Company (SLC). This percentage stays the same if your salary rises.
The salary threshold is currently £31,395. This is equal to:
- £2,616 per month
- £606 per week
If you’re a student from England, Wales or Northern Ireland you can find out more about your repayment plan on GOV.UK.
Interest rates
The current interest rate for students on repayment Plan 4 is 4.3%.
You can find out how interest for Plan 4 is calculated on GOV.UK.
If you’re a student from England, Wales or Northern Ireland you can find out more about interest rates for other repayment plans on GOV.UK.
Repaying from abroad
You have to continue making payments to your student loan if you're living or working abroad.
Update your employment details on GOV.UK if you're working abroad for 3 months or longer.
SLC has different thresholds for other countries. The amount you pay may be more or less than you normally pay in the UK. Find out more about repaying your student loan on GOV.UK.
Paying it off quicker
You can pay your loan off whenever you want to by:
- paying extra each month
- making an extra one-off payment
- paying it off in full
You can't get a refund on any extra repayments.
Find out more about making extra repayments on GOV.UK.
Cancelling your student loan
If you took out your first student loan:
- in or before academic year 2006/07, then it will be cancelled when you turn 65 or 30 years after you became eligible to repay, whichever comes first
- in or after academic year 2007/08, then it will be cancelled 30 years after you became eligible to repay
You become eligible to repay your student loan the April after you leave college or university.
Cancelling your student loan if you're permanently unfit for work
The Student Loans Company can cancel the loan if you get a disability-related benefit and are permanently unfit for work.
You'll need to send them medical confirmation along with evidence of your disability benefit.
Contact the Student Loans Company to find out what evidence they need.
If you overpay your student loan
Contact the Student Loans Company if you think you've overpaid your student loan.
Find out more about getting a refund if you've overpaid your student loan on GOV.UK.
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