UK Student Loan Repayment Thresholds 2024/25
Updated January 2025 Using official Student Loans Company figures
Key point: You only repay your student loan when you earn above your plan's threshold. Below the threshold, you pay nothing — regardless of your loan balance.
Current Repayment Thresholds (2024/25 Tax Year)
The repayment threshold is the amount you can earn before student loan repayments begin. These thresholds apply from April 2024 to March 2025:
| Plan Type | Annual Threshold | Monthly Threshold | Weekly Threshold |
|---|---|---|---|
| Plan 1 | £24,990 | £2,082 | £480 |
| Plan 2 | £27,295 | £2,274 | £524 |
| Plan 4 | £31,395 | £2,616 | £603 |
| Plan 5 | £25,000 | £2,083 | £480 |
| Postgraduate Loan | £21,000 | £1,750 | £403 |
Source: GOV.UK
How Repayment Thresholds Work
Understanding thresholds is crucial for knowing when and how much you'll repay:
What counts as income?
- Employed: Your gross salary before tax (but after salary sacrifice)
- Self-employed: Your taxable profits from Self Assessment
- Multiple jobs: Combined income from all employment
How repayments are calculated
You repay a percentage of your income above the threshold, not on your total income:
- Plan 1, 2, 4, 5: 9% of income above threshold
- Postgraduate: 6% of income above threshold
Example: Plan 2 with £35,000 salary
Income above threshold: £35,000 - £27,295 = £7,705
Annual repayment: £7,705 × 9% = £693.45
Monthly repayment: £693.45 ÷ 12 = £57.79
The Threshold Freeze Explained
The Plan 2 repayment threshold has been frozen at £27,295 since 2021 and will remain frozen until at least April 2027. This means:
- As wages rise with inflation, more of your income falls above the threshold
- You effectively pay more each year without any policy change being announced
- The Institute for Fiscal Studies estimates this costs the average graduate thousands of pounds extra
Use our UK student loan calculator to see exactly how the threshold freeze affects your total repayments.
Historical Threshold Changes
| Tax Year | Plan 1 | Plan 2 | Plan 4 |
|---|---|---|---|
| 2024/25 | £24,990 | £27,295 | £31,395 |
| 2023/24 | £22,015 | £27,295 | £27,660 |
| 2022/23 | £20,195 | £27,295 | £25,375 |
| 2021/22 | £19,895 | £27,295 | £25,000 |
What If I Have Multiple Loans?
If you have both an undergraduate loan (Plan 1, 2, 4, or 5) and a Postgraduate loan:
- Each loan has its own threshold
- You make separate repayments on each loan
- Total repayment can be up to 15% of income above thresholds (9% + 6%)
Our student loan repayment calculator handles multiple concurrent loans.