Student Funding & Costs
Student Loan Repayment Plans: Finding the Rules That Apply to You
Identify your student-loan repayment plan, check current income thresholds and compare account and payroll records before querying a deduction.
At a glance
Confirm the plan recorded in your official account.
Use current thresholds and the correct pay period.
Check multiple-plan rules and resolve discrepancies with the right organisation.
The correct student-loan repayment rules depend on your plan, not simply on the size of your balance or where you live now. The funding body, course type and start date can matter. If you have studied more than once, you may have loans on different plans.
Begin with your official repayment account and current GOV.UK guidance. This article explains what to check and how to organise the information; it is not a personal recommendation to borrow, make extra repayments or change other financial commitments. Rates and thresholds can change, so verify the current figures before calculating your own position.
Find the plan recorded on your account
GOV.UK says you cannot choose your repayment plan. Sign in to the official student-loan repayment account to check the recorded plan and, where needed, obtain the active plan type letter. Use the official route rather than a link in an unexpected message about a refund or account problem. (GOV.UK: which repayment plan you are on)
Record the funding body, course start date and type of loan for each period of study. An undergraduate loan and a postgraduate loan may be handled differently. The word “postgraduate” in a course title is not enough on its own: for example, a PGCE is treated differently from the postgraduate master’s or doctoral loan route in the plan guidance. (GOV.UK: which repayment plan you are on)
Our guide to university tuition and maintenance support explains the earlier funding decision. The amount you were eligible to receive and the rules for repaying an existing loan are related questions, but they are not the same calculation.
| Funding route | What to check |
|---|---|
| Student Finance England | Course type and start date; Plan 1, 2, 5 or Postgraduate Loan may apply |
| Student Finance Wales | Course type and start date; Plan 1, 2 or Postgraduate Loan may apply |
| Student Awards Agency Scotland | Current guidance identifies Plan 4 |
| Student Finance Northern Ireland | Current guidance identifies Plan 1 |
| More than one loan | Check each recorded plan and the combined repayment rules |
The table is a route to the official check, not a replacement for your account record. In particular, England’s course-start changes and different loan products mean that a friend’s plan is not reliable evidence of your own. Keep any unusual or older loan arrangement separate and ask the loan administrator which rules apply.
Separate the repayment amount from the balance
For the income-contingent plans covered by the current GOV.UK guide, required repayments are based on relevant income above the plan’s threshold. The balance also includes interest, but it does not set the ordinary income-based deduction in the same way as a fixed monthly repayment on a conventional personal loan.
Check three items together: the plan, the threshold for the relevant pay period and the repayment percentage. The guide currently gives 9% above the threshold for Plans 1, 2, 4 and 5, and 6% for the Postgraduate Loan plan. Do not apply either percentage to all your earnings without subtracting the applicable threshold. (GOV.UK: how much you repay)
For a purely illustrative calculation, suppose a relevant pay-period income is £300 above the applicable threshold and the rate is 9%. Nine per cent of £300 is £27. This illustrates the method only; your payroll calculation must use the actual plan, pay-period rules and relevant earnings.
Use current figures and the right pay period
At the research check on 22 October 2026, the GOV.UK guide lists annual thresholds of £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4, £25,000 for Plan 5 and £21,000 for the Postgraduate Loan plan. Treat those as dated reference figures and check the live guidance for the period you are calculating. (GOV.UK: how much you repay)
The guide provides separate weekly and monthly thresholds. A bonus or overtime can take one pay period above its threshold even where your usual pay is lower. This is why an annual salary estimate alone may not explain a particular deduction.
If your annual income ends below the relevant annual threshold after deductions have been made, check the official refund guidance. Do not assume a deduction is necessarily an error simply because the rest of the year was lower paid, or that every overpayment follows the same refund process. (GOV.UK: getting a refund)
Check more than one plan carefully
Having two undergraduate-type plans does not mean that you simply double the 9% rate. Current guidance sets out how a single repayment is calculated using the lowest applicable threshold and allocated between loans. A Postgraduate Loan can create an additional repayment alongside another plan. (GOV.UK: how much you repay)
Keep the plan names visible when comparing your payslip with your account. If a repayment looks unexpected, identify which part relates to which plan before trying to explain the total. Use the official combined-plan examples rather than adding together two independent estimates without checking the rules.
For an Advanced Learner Loan, our guide to Advanced Learner Loan repayments provides the course-specific starting questions. A loan taken for a later course may not use the same plan as an earlier qualification.
Understand which organisation can resolve the issue
If the plan on your employer’s payroll differs from your active plan type letter, raise the discrepancy with payroll and provide the relevant official evidence securely. GOV.UK describes this check as the route to correcting an incorrect payroll plan. Keep the response and examine subsequent deductions.
For questions about the loan account, refund eligibility or repayment status, use the Student Loans Company’s official contact route. For Self Assessment, HMRC calculates repayment through the tax-return process, and the treatment can involve annual income and deductions already made. Do not assume that a simple monthly payroll example covers self-employment or mixed income.
If you move overseas, your responsibilities and assessment process need a separate check. Contact the loan administrator through its official route and keep your employment and contact details current. Moving country does not itself establish that repayment obligations have ended.
Keep a short repayment record
Store the plan letter, relevant payslips, annual statements and correspondence in a secure place. Record the date and reason for any enquiry. This makes it easier to explain whether the problem concerns the plan, the income used, a duplicate payment or an account update.
Review the effect on your overall budget using a realistic study-cost plan. Keep required deductions separate from any voluntary extra payment you are considering. Before paying extra, read the official conditions and consider independent guidance; this article does not assess whether that choice benefits your circumstances.
Do not share passwords, verification codes or full account records with someone offering an unexpected refund. Navigate to the official service yourself. If information conflicts, obtain an explanation from the organisation responsible for the record rather than relying on a social-media example with a similar salary.
Check a repayment in four steps
- Identify: confirm the recorded plan or plans.
- Match: use the correct income period and current rules.
- Compare: review the account and payslip evidence.
- Resolve: contact payroll, SLC or HMRC as appropriate.
Common questions
Can I choose the plan with the highest threshold?
No. Your plan follows the applicable funding and course rules. Check the plan recorded in your official account rather than choosing a preferred threshold. If you think the record is wrong, ask the loan administrator to explain it and use the active plan type letter when checking an employer’s payroll setup.
Does a larger balance mean a larger monthly deduction?
For the income-contingent plans discussed here, the ordinary required deduction is based on relevant income above the threshold. The balance and interest still matter, but they are separate from that calculation. Check the rules for your exact loan, especially if you have an older or unusual arrangement outside the examples.
Why was a repayment taken in a bonus month?
The relevant pay-period income may have exceeded the threshold even if your normal pay does not. Compare the payslip with the current weekly or monthly rule for your plan. If annual income ultimately falls below the annual threshold, consult the official refund guidance rather than assuming the deduction must automatically be reversed.
Will two undergraduate loans double my repayment rate?
Do not calculate it that way. The official guidance explains how repayments work across more than one non-postgraduate plan, including the lowest relevant threshold and allocation between loans. Check all recorded plans. A Postgraduate Loan has separate combined-repayment rules, so identify the loan types before estimating the total.
Who should I contact about the wrong payroll plan?
Download the active plan type letter from your official account and ask payroll which plan it uses. If they differ, provide the letter through an appropriate secure route and request correction. Contact the loan administrator for account questions or possible refunds, and keep the evidence and responses together.
Do the same examples apply to self-employed income?
Not necessarily. HMRC calculates student-loan repayments through Self Assessment using the relevant annual information. Mixed employment and self-employment can require a combined view, including amounts already deducted. Use the official guidance for that situation and obtain appropriate tax advice if you cannot reconcile the calculation.
Can interest be added when I am not making repayments?
Yes, the current guide explains that interest can continue below the repayment threshold or while you are not working. The applicable rate depends on the plan and circumstances and can change. Check your official statement and current interest guidance rather than using an old rate from a previous year.
Should I make an extra payment to reduce the balance?
That is a separate financial decision which depends on your circumstances and the loan’s rules. Read the official extra-repayment guidance and consider independent advice before committing money. This guide helps you identify the correct repayment framework; it does not recommend voluntary overpayments or assess their value for you.
Sources and further reading
- GOV.UK: which repayment plan you are on — funding route, course and plan checks.
- GOV.UK: how much you repay — current thresholds, income calculations, multiple plans and interest.
- GOV.UK: getting a refund — circumstances and process for repayment refunds.
