When Do You Start Paying Back Student Loans?

 

If you are applying for university, already studying, or getting ready to graduate, one of the biggest money questions is simple: when do you start paying for student loans?

The short answer is that you do not start repaying your student loan straight away. In the UK, repayments usually begin from the April after you finish or leave your course, but only once your income is above the repayment threshold for your loan plan.

That means student loans work differently from normal borrowing. You do not make fixed monthly payments just because you owe money. Your repayments are based on what you earn.

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Quick Answer: When Do Student Loan Repayments Start?

The earliest you will start repaying is usually the April after you leave or finish your course.

However, repayments only come out if your income is above the threshold for your repayment plan. If you earn under the threshold, you will not make repayments at that time.

For example, if you finish university in summer 2027, the earliest repayments would usually begin in April 2028. If your income is below the threshold at that point, you would not pay anything until your earnings increase.

If you are studying part-time and your course lasts longer than four years, repayments may begin from the April four years after your course started, as long as your income is over the threshold.

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Which Student Loan Repayment Plan Are You On?

Your repayment plan depends on where you applied for student finance, when you started your course, and what type of course you studied.

Most new undergraduate students from England who started on or after 1 August 2023 are on Plan 5. Students from England who started an undergraduate course between 1 September 2012 and 31 July 2023 are usually on Plan 2.

Students from Wales, Scotland and Northern Ireland may be on different plans. Postgraduate loans also have their own repayment rules.

You cannot choose your repayment plan, but you can check it by signing in to your student loan repayment account.

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Current UK Student Loan Repayment Thresholds

Your threshold is the amount you can earn before repayments begin. These thresholds can change each tax year, so it is always worth checking the latest student loan repayment rules.

Current UK repayment thresholds are:

Plan 1: £26,900 a year

Plan 2: £29,385 a year

Plan 4: £33,795 a year

Plan 5: £25,000 a year

Postgraduate Loan: £21,000 a year

For Plan 1, Plan 2, Plan 4 and Plan 5, repayments are 9% of your income above the threshold. For a Postgraduate Loan, repayments are 6% of your income above the threshold.

You do not repay 9% of your full salary. You only repay a percentage of the amount above your threshold.

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How Much Will You Pay Each Month?

Your repayment amount depends on your income and plan type.

For example, if you are on Plan 5 and earn £28,000 a year, your income is £3,000 above the £25,000 threshold. You would repay 9% of £3,000 across the year, which works out at around £270 a year, or roughly £22 a month.

If your income increases, your repayment amount increases. If your income falls below the threshold, repayments stop.

This is why student loan repayments are often easier to manage than standard loan repayments. They adjust with your earnings rather than being a fixed bill.

If you are still working out your wider university costs, Unilife’s guide to how much student loan you could get can help you understand what support may be available before repayments become relevant.

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What Happens If Your Income Drops?

If your income drops below the repayment threshold, your repayments should stop automatically through payroll.

This can happen if you:

Change jobs

Reduce your hours

Take a career break

Earn less in a certain month

Stop working

If you are paid a bonus or overtime, you might make a repayment in that pay period if your income goes above the weekly or monthly threshold. If your annual income ends up below the yearly threshold, you may be able to request a refund through your repayment account.

You can also manage your student loan balance online to check your details and keep your account up to date.

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Do Student Loan Repayments Affect Renting or Credit Scores?

Student loans do not appear on your credit report and do not directly affect your credit score.

However, repayments can still matter when you are planning your monthly budget. If you are earning above the threshold, student loan repayments reduce your take-home pay, just like tax and National Insurance.

This is useful to remember when working out:

How much rent you can afford

How much to save each month

Whether to choose bills-included accommodation

How much disposable income you will have after graduation

For students and graduates, knowing your likely repayment amount can make budgeting feel much clearer. If you are comparing living costs before moving to university, our student budgeting guide is a helpful place to start.

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Should You Pay Your Student Loan Back Early?

You can make voluntary repayments if you want to, but it is worth thinking carefully before doing this.

For many graduates, student loan repayments are based on income and any remaining balance may eventually be written off depending on the plan. Paying extra does not reduce the amount your employer takes through payroll each month.

Before making extra repayments, it may be more useful to build an emergency fund, pay off higher-interest debt, or save for important living costs.

If you are unsure, check official guidance or speak to a financial adviser before making large voluntary repayments.

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Final Thoughts: Plan Your Money With Confidence

You only start paying back your student loan once you have left or finished your course and your income is above the threshold for your repayment plan.

For most students, this means repayments are not something to worry about while you are studying. The more useful thing to do now is understand how the system works, keep track of your plan, and build a realistic budget for university life.

If you are still preparing for university, you may also find it helpful to read Unilife’s guides on how to apply for student finance, student finance guides, and accommodation options in Southampton, Guildford and Winchester.

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FAQs

When do you start paying for student loans in the UK?

Usually from the April after you finish or leave your course, but only if your income is above the repayment threshold for your plan.

Do I repay my student loan while I am at university?

Most full-time students do not make repayments while studying. Repayments normally begin after you leave or finish your course and earn above the threshold.

What happens if I never earn above the threshold?

If your income stays below the threshold, you will not make repayments. Your loan may eventually be written off depending on your repayment plan.

Are student loan repayments taken automatically?

Yes, if you are employed in the UK, repayments are usually taken automatically through PAYE before you receive your pay.

Does a student loan affect my credit score?

Student loans do not appear on your credit report, but repayments can affect your monthly take-home pay.