When do I start paying back my Plan 1 student loan?
You will usually start repaying your loan at the start of the tax year after you finish or leave your course. For example, if you completed your course in June 2015 then the first student loan repayment would start to be deducted in the following tax year, 2016/17, so from April 2016.
But payments only start if you earn over the 'repayment threshold'. Your earnings are calculated before taking off tax or National Insurance contributions (NIC).
The repayment threshold changes each year:
- 2018/19 (the tax year to 5 April 2019) - £18,330
- 2019/20 (the tax year to 5 April 2020) - £18,935
- 2020/21 (the tax year to 5 April 2021) - £19,390
The subsequent pages explain the various ways of collecting repayments and how they are calculated for: