I am an employee. How do I make Plan 1 student loan repayments?
Employee student loan repayments come off your wages before you get them – check your payslips!
Your employer is usually tasked with taking student loan repayments off your wages through Pay As You Earn (PAYE). They pay them to HM Revenue & Customs (HMRC) who then pay them to the Student Loans Company (SLC). SLC then show your new loan balance on your borrower account with them. But if you are nearing repayment of your loan in full, you can sometimes ‘opt out’ of PAYE and arrange a direct debit to SLC instead.
This page is for employees within the UK tax system for those with Plan 1 income-contingent student loans. There is a section on Plan 2 loans and the SLC website has a tool to help you find out which kind of loan you have.
If you have gone to work abroad and are not in the UK tax system, you will need to make a payment arrangement direct with SLC.
We look at below:
- How do Pay As You Earn (PAYE) student loan repayments work?
- What are employed ‘earnings’ for student loan repayments?
- How are the repayments calculated?
- I’ve earned less than the repayment threshold. Can I get a refund?
- What happens if I have more than one job?
- When can I opt out of PAYE repayments?