- Scheme Type
The first step is to determine which plan is your student loan (blog is discussing Student Finance England student loan) –
If you started your course before 1 September 2012, you’re on Plan 1.
If you started your course between 1 September 2012 and 31 July 2023, you’ll be on Plan 2 if:
- you’re studying an undergraduate course.
- you’re studying a Postgraduate Certificate of Education (PGCE)
- you take out an Advanced Learner Loan
- you take out a Higher Education Short Course Loan
You’ll be on a Postgraduate Loan plan if you’re studying a postgraduate master’s or doctoral course.
If you’re starting your course on or after 1 August 2023, you’ll be on Plan 5 if:
- you’re studying an undergraduate course.
- you’re studying a Postgraduate Certificate of Education (PGCE)
- you take out an Advanced Learner Loan
- you take out a Higher Education Short Course Loan
- You’ll be on a Postgraduate Loan plan if you’re studying a postgraduate master’s or doctoral course.
2. When do you start repaying? What is the threshold?
You’ll only repay your student loan when your income is over the threshold amount for your repayment plan. The threshold amounts change on 6 April every year.
The thresholds are different for each plan type.
| Plan type | Yearly threshold | Monthly threshold | Weekly threshold |
| Plan 1 | £20,195 | £1,682 | £388 |
| Plan 2 | £27,295 | £2,274 | £524 |
| Plan 4 | £25,375 | £2,114 | £487 |
| Plan 5 | £25,000 | £2,083 | £480 |
| Postgraduate Loan | £21,000 | £1,750 | £403 |
3. What is the percentage amount owed to HMRC from my income?
You’ll repay either:
- 9% of your income over the threshold if you’re on Plan 1, 2, 4 or 5
- 6% of your income over the threshold if you’re on a Postgraduate Loan plan
Example
If you are on Plan 1 and have an income of £30,000 a year, meaning you get paid £2,500 each month.
Calculation:
£2,500 – £1,682 (your income minus the Plan 1 threshold) = £818 of your income is relevant to your student loan, so 9% of £818 = £73.
This means the amount you’d repay each month would be £73.
4. If you’re on more than one plan type
How much you repay depends on which of your plan types has the lowest repayment threshold and whether you have a Postgraduate Loan.
If you do not have a Postgraduate Loan,you’ll repay 9% of your income over the lowest threshold out of the plan types you have. You’ll only have a single repayment taken each time you get paid, even if you’re on more than one plan type.
Example
You’re on Plan 1 and Plan 2 and have an income of £25,200 a year, meaning you get paid £2,100 each month. This is over the Plan 1 threshold of £1,682 but under the Plan 2 threshold of £2,274.
You’ll repay 9% of your income over £1,682 a month because that is the lowest threshold out of the plan types you have.
Calculation: £2,100 – £1682 (your income minus the lowest threshold) = £418, 9% of £418 = £37
This means the amount you’d repay each month would be £37.
If you have a Postgraduate Loan, you’ll repay 6% of your income over the Postgraduate Loan threshold (£21,000 a year) and 9% of your income over the lowest threshold for any other plan types you have. So, you will potentially be making 2 repayments per month.
Example
You have a Postgraduate Loan and a Plan 2 loan and have an income of £28,800 a year, meaning you get paid £2,400 each month. This is over the Postgraduate Loan threshold of £1,750 and the Plan 2 threshold of £2,274.
Calculation:
£2,400 – £1,750 (your income minus the Postgraduate Loan threshold) = £650 6% of £650 = £39
£2,400 – £2,274 (your income minus the Plan 2 threshold) = £126 9% of £126 = £11
5. If you have more than one job
You’ll only make repayments from jobs where you’re paid over the threshold for your plan type, not your combined income.
6. If you’re self-employed
HM Revenue and Customs (HMRC) will work out how much you repay each year from your tax return. Your repayments will be based on your income for the whole year.
If you’ve already made repayments from a salary, HMRC will deduct them from the amount you have to repay.
