The level of income graduates and postgraduates can earn before needing to make repayments of student loans for 2022/23 have been confirmed as follows:
Loan type Income threshold (£) Rate of deduction
Plan 1 20,195 9%
Plan 2 27,295 9%
Plan 3 (PG) 21,000 6%
Plan 4 25,375 9%
Student loans – plan types
Plan 1 student loan
You’ll only repay when your income is over £382 a week, £1,657 a month or £19,895 a year (before tax and other deductions).
Plan 2 student loan
You’ll only repay when your income is over £524 a week, £2,274 a month or £27,295 a year (before tax and other deductions).
Plan 3 (PG) - Postgraduate Loan repayment plan
If you took out a master’s Loan or a Doctoral Loan, you’ll only repay when your income is over £403 a week, £1,750 a month or £21,000 a year (before tax and other deductions).
Plan 4 student loan
You’ll only repay when your income is over £480 a week, £2,083 a month or £25,000 a year (before tax and other deductions).
Early repayments
There’s no penalty for paying some, or all your loan off early.
Types of student loan that need to be repaid
There are three main types of loan that need to be paid back:
- Tuition Fee Loans
- Maintenance Loans
- Postgraduate Loans
Other types of student finance such grants and bursaries, do not have to be paid back unless there’s an overpayment. You must still repay your student loan if you leave your course early.
Further information about replaying a student loan can be found on the government’s website here.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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