When do I start repaying my student loan?

You start repaying your student loan when your income exceeds the threshold for your loan plan. For Plan 2 loans, this is £27,295 per year, and for Plan 1 loans, it's £22,015 per year. Repayments are automatically deducted through PAYE if you're employed.

How much do I pay on my student loan each month?

Student loan repayments are 9% of your income above the threshold. For example, if you earn £30,000 on Plan 2, you'd pay 9% of £2,705 (£30,000 - £27,295), which equals £243.45 per year or about £20 per month.

How do I pay student loans as self-employed?

As a self-employed person, you pay student loan repayments through your self-assessment tax return. HMRC calculates the amount based on your profits and adds it to your tax bill, payable by 31st January.

Do I pay student loan on dividends from my limited company?

Yes, student loan repayments apply to dividend income above the threshold. However, the calculation is more complex as dividends are taxed differently. Your accountant can help calculate the exact amount owed.

What happens if I don't pay my student loan?

Non-payment of student loans can result in penalties, interest charges, and enforcement action by HMRC. It's important to include student loan calculations in your tax planning and set aside funds for repayments.

Can I pay off my student loan early?

Yes, you can make voluntary repayments to pay off your student loan early. However, consider that loans are written off after 30 years (Plan 2) or 25 years (Plan 1), so early repayment may not always be financially beneficial.

How do student loan repayments work with multiple income sources?

If you have multiple income sources (employment, self-employment, dividends), all relevant income is combined to calculate your student loan repayments. This is calculated on your annual self-assessment tax return.

Do I need an accountant to help with student loan calculations?

While not required, an accountant can help ensure accurate student loan calculations, especially for complex situations involving multiple income sources, limited companies, or varying income levels throughout the year.

How do I pay my student loan?

Last updated Feb 2, 2026

1 min read

Written by Jordan MaceyAAT

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If you're <a href="https://goforma.com/self-employed" target="_blank">self-employed</a>, HMRC will work out your loan repayment amount from your tax return. You make your repayment the same time you pay your tax. If you're an employee and your salary is above the minimum amount, your loan repayments will be deducted from your salary by your employer. <a href="https://www.gov.uk/repaying-your-student-loan/make-extra-repayments" target="_blank">Additional repayments</a> can be made through your <a href="https://www.gov.uk/sign-in-to-manage-your-student-loan-balance" target="_blank">online repayment account</a> and by card, bank transfer or cheque.

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How do I pay my student loan?

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