UK pay guide
UK student loan deductions explained
Student-loan repayments are normally deducted through PAYE once your pay exceeds the threshold for your plan.
In short
Your plan type, pay period and earnings determine the deduction. A postgraduate loan can be deducted alongside an undergraduate plan.
Plan type matters
Plan 1, 2, 4 and 5 have different thresholds. Your employer uses the plan information provided by HMRC or shown on the starter checklist; ask payroll if you think the wrong plan is being used.
Payroll uses each pay period
PAYE deductions are worked out from weekly or monthly pay rather than by simply dividing an annual total. Variable hours, overtime or a bonus can therefore make one month's deduction higher.
Repaying more than required
Payroll deductions stop when the Student Loans Company tells your employer to stop. If you are close to clearing a balance, contact the Student Loans Company before making voluntary overpayments or changing payment method.
Use the student loan repayment calculator for an estimate. Check the official repayment guidance for your plan and current thresholds.