UK Student Loan FAQs

Yes, but only when you earn over the repayment threshold for your plan type. Repayments are automatically taken from your salary through PAYE. Any remaining balance is written off after the end of your loan term (25-40 years depending on your plan).

You'll start repaying your student loan from the April after you graduate or leave your course, and only once you're earning over the repayment threshold for your loan plan. For most recent graduates, repayments won't start until they're in employment and earning above the threshold.

For undergraduate degrees, you can borrow for full tuition fees (up to £9,250 per year at most universities) and maintenance loans for living costs (between £3,597 and £13,022 per year depending on your household income and whether you're living away from home). Postgraduate loans provide up to £12,167 for Master's courses and up to £27,892 for PhDs.

A tuition fee loan covers the cost of your course and is paid directly to your university or college. A maintenance loan helps with living costs like accommodation and food, and is paid into your bank account at the start of each term. Both are repaid in the same way once you're earning over the threshold.

You pay 9% of your income above the threshold for undergraduate loans (Plan 1, 2, 4, 5) and 6% above the threshold for Postgraduate loans. For example, on Plan 2 with a £30,000 salary, you would pay 9% of the amount over £27,295, which equals approximately £20 per month.

Repayments are calculated as a percentage of your income above the threshold: 9% for undergraduate loans and 6% for postgraduate loans. They're usually deducted automatically from your salary by your employer. If you're self-employed, repayments are calculated as part of your annual tax return.

Yes, you can make voluntary repayments at any time through your online account with the Student Loans Company. However, for most people, it may not be financially beneficial to do so, as any remaining balance is written off after the repayment period ends. Use our Overpayment Calculator to see if it makes financial sense for your situation.

If you move overseas, you're still required to repay your student loan. You'll need to notify the Student Loans Company and complete an Overseas Income Assessment form. Repayment thresholds are adjusted for the cost of living in different countries, and you'll make repayments directly to the SLC rather than through PAYE.

Interest rates vary by loan plan. Plan 1 and Plan 4 use the lower of RPI or Bank of England base rate + 1%. Plan 2 varies from RPI to RPI+3% depending on income. Plan 5 has RPI+0% during study, then varies with RPI. Postgraduate loans have a fixed rate of RPI+3%.

No, student loans do not appear on your credit file and don't affect your credit score. They won't impact your ability to get a mortgage or other loans, although lenders may consider your student loan repayments when assessing affordability.

Student loans don't directly affect mortgage applications as they don't appear on your credit file. However, since repayments reduce your monthly income, lenders will factor this into affordability calculations. For most borrowers, the impact is minimal, as repayments are proportional to earnings.

For most people, making voluntary overpayments isn't recommended as the majority of borrowers won't repay the full amount before it's written off. However, high earners on certain plans might benefit from early repayment. Use our Overpayment Calculator to assess your personal situation.

If you leave your course early, you'll still need to repay the loans you've received so far. The repayment terms remain the same - you'll only start repaying once you earn over the threshold, and any remaining balance will be written off after the normal term period. You may need to repay some of your most recent maintenance loan if you leave during a term.

If you're self-employed, you'll make student loan repayments through Self Assessment. You'll pay the same percentage above the threshold as employed graduates. These payments are calculated when you file your tax return and will be included in your payment on account and balancing payment.

During maternity, paternity, or shared parental leave, your repayments will adjust based on your actual income. If your income drops below the repayment threshold, your repayments will automatically stop until you begin earning above the threshold again. This period still counts toward your loan's write-off term.

If a borrower dies, their student loan is cancelled. The Student Loans Company will require evidence such as a death certificate. No further repayments will be required, and the loan will not become part of the deceased person's estate or pass to their family.