The short version: Student loan deductions are repayments automatically taken from your salary when you earn above a certain threshold. The amount depends on which plan you’re on.
How do the plans work?
Plan 1 is for older loans and Scottish/Northern Irish students. Plan 2 is for English and Welsh students who started after September 2012. Plan 4 is for Scottish students after a certain date. Postgraduate loans have their own rules. Each plan has different thresholds and repayment rates.
What if you’re self employed?
You calculate and pay student loan repayments through Self Assessment instead of PAYE. The thresholds and rates still apply, just collected differently.
Does it ever get written off?
Yes, after a certain number of years (varies by plan) or when you reach a certain age. If you haven’t paid it off by then, the remaining balance is cancelled.
Got student loan questions? We can help you understand how it affects your tax.
