Question 1

What is the difference between Plan 1 and Plan 2 student loans?

Accepted Answer

Plan 1 applies to loans taken out before September 2012 with a repayment threshold of £24,990. Plan 2 is for loans from September 2012 onwards with a higher threshold of £27,295 and higher interest rates linked to RPI + up to 3%.

Question 2

When are student loans written off?

Accepted Answer

Plan 1: age 65 or 25 years after first due to repay. Plan 2: 30 years. Plan 4 (Scotland): 30 years. Plan 5: 40 years. Postgraduate: 30 years. Any remaining balance is cancelled.

Question 3

Should I make voluntary repayments on my student loan?

Accepted Answer

Usually no. Most graduates will never fully repay their Plan 2 loan before write-off, so extra payments are wasted money. Voluntary repayments only make sense for high earners with smaller balances who will clearly repay before write-off.

Question 4

Can salary sacrifice reduce my student loan repayments?

Accepted Answer

Yes — salary sacrifice pension contributions reduce your gross income and therefore the amount above the repayment threshold, saving 9% of the sacrificed amount in student loan repayments.

Student Loan Repayment Calculator 2025/26

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