Plan 1? Plan 2? Doesn't matter — we'll decode exactly what your loan costs you.
Plan 1: pre-2012 English/Welsh loans or Scottish/NI loans. Plan 2: post-2012 English/Welsh loans. Plan 4: Scottish loans from 2021. Plan 5: post-2023 English loans. Each has different thresholds and interest rates.
Repayments start the April after you finish/leave your course, but only when your income exceeds the plan threshold. For Plan 2, that's £27,295/year. If your income drops below the threshold, repayments automatically stop.
Plan 1: written off at age 65 (old loans) or 25 years after. Plan 2: 30 years after first repayment. Plan 4: 30 years. Plan 5: 40 years. Postgraduate: 30 years. The written-off amount is NOT taxed.
Usually no, unless you're close to repaying it in full anyway. Student loan interest rates are relatively low, the debt is written off, and repayments only happen above the threshold. It's often better to invest spare cash.
9% of income above the threshold is deducted via PAYE. For Plan 2 on a £40K salary: (£40,000 - £27,295) × 9% = £1,143/year or £95/month. This is collected automatically by your employer like tax and NI.