Funding
Student Finance: how much you repay and when
A Student Finance loan isn't like a bank loan: you only pay if you earn more than a minimum, you pay according to what you earn and, after a while, anything left is written off. We explain it with numbers.
In 30 seconds
- If you started your degree in England from August 2023, you're on Plan 5.
- You only pay if you earn more than £25,000 a year (about £2,083 a month).
- You pay 9% of whatever you earn above that figure, not 9% of your salary.
- If you stop earning more than £25,000, you stop paying.
- Anything left unpaid is written off 40 years after your first April of repayment.
How much you pay each month
The repayment doesn't depend on how much you borrowed, but on how much you earn. If you're employed, it's taken from your payslip automatically, like tax.
| If you earn a year | Above £25,000 | You pay a year | You pay a month |
|---|---|---|---|
| £22,000 | £0 | £0 | £0 |
| £25,000 | £0 | £0 | £0 |
| £28,000 | £3,000 | £270 | £22.50 |
| £32,000 | £7,000 | £630 | £52.50 |
| £40,000 | £15,000 | £1,350 | £112.50 |
The key point: on a salary of £28,000 a year you'd pay about £22.50 a month, even if you've borrowed £50,000. The repayment comes from your salary, not from what you owe.
When you start paying
At the earliest, in the April after you finish or leave your course. While you study you pay nothing. And if that April you earn less than £25,000, you still don't pay.
Interest
On Plan 5, interest follows inflation (the RPI index) and is reviewed every year. For 2026/27 it's 4.1%. Interest makes the debt grow, but it doesn't change your repayment: your repayment depends only on what you earn.
When it's written off
Whatever you haven't repaid is written off 40 years after the first April you were due to start repaying. It doesn't pass to your family and can't be inherited.
If your situation changes
- If you're self-employed: you pay it through your tax return (Self Assessment).
- If you lose your job or earn less: the repayment goes down or stops automatically.
- If you move abroad: you have to tell Student Finance. You'll keep paying according to your income, with the thresholds of the country where you live.
- If you want to pay more: you can make extra payments whenever you like, with no penalty.
Frequently asked questions
Does it affect my credit history?
It doesn't appear on your credit history like a bank loan. When you apply for a mortgage, the lender can take your monthly repayments into account.
Does my partner's salary count?
No. For repayment, only what you earn counts.
What if I studied before 2023?
Then you may be on a different plan (normally Plan 2), with a different threshold and other conditions. You can see it in your Student Finance account.
Official sources (checked on 25/10/2026): GOV.UK · Repaying your student loan · GOV.UK · What you pay. This guide is for guidance only: your loan's conditions are in your Student Finance account.
