What are the student loan repayment thresholds for Plan 1, 2, 4, and 5?
If you have a student loan, repayments are collected through your salary (via PAYE) or through your Self-Assessment tax return if you are self-employed. The amount you repay depends on which repayment plan you are on and how much you earn above the relevant threshold.
2024/25 repayment thresholds and rates:
| Plan | Annual Threshold | Monthly Threshold | Repayment Rate |
|---|---|---|---|
| Plan 1 | £22,015 | £1,834 | 9% |
| Plan 2 | £27,295 | £2,274 | 9% |
| Plan 4 | £27,660 | £2,305 | 9% |
| Plan 5 | £25,000 | £2,083 | 9% |
| Postgraduate Loan | £21,000 | £1,750 | 6% |
Which plan are you on?
- Plan 1: English and Welsh students who started before 1 September 2012, or Northern Irish students.
- Plan 2: English and Welsh students who started on or after 1 September 2012.
- Plan 4: Scottish students.
- Plan 5: English and Welsh students who started on or after 1 August 2023.
How repayments are calculated:
You repay 9% of everything you earn above the threshold (6% for Postgraduate Loans). For example, on Plan 2, if you earn £35,000 per year, your annual repayment is: (£35,000 - £27,295) x 9% = £693.45 per year (approximately £57.79 per month).
Self-Assessment:
If you are self-employed or have untaxed income, your student loan repayment is calculated on your Self-Assessment return. You will see it as a separate line on your tax calculation.
When loans are written off:
- Plan 1: 25 years after the April you were first due to repay, or when you turn 65.
- Plan 2: 30 years after the April you were first due to repay.
- Plan 4: 30 years after the April you were first due to repay, or when you turn 65.
- Plan 5: 40 years after the April you were first due to repay.
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