In the UK, you do not need to take manual steps to start paying back your university student loan, as repayments are deducted automatically through the tax system once you graduate and earn above a specific salary threshold.

Here is a summary of the exact steps, thresholds, and your repayment options.

4 Simple Steps to Post-Course Repayments

1. Wait for eligibility: You become eligible to start repaying in the first April after you finish or leave your course.
2. Deduction via employment: If you are traditionally employed, HM Revenue and Customs (HMRC) will automatically inform your employer to deduct 9% of everything you earn above your plan’s threshold from your payslip.
3. Deduction via self-employment: If you are self-employed, you must calculate and pay your student loan repayment manually through your annual Self Assessment tax return.
4. Notify when leaving the UK: If you move abroad for more than three months, you must update your employment details directly with the Student Loans Company (SLC) to set up direct repayments, otherwise you will incur financial arrears.

Repayment Plan Thresholds Summary (Undergraduate)

You only pay 9% of your income that goes over the threshold. If your income drops below this number, your repayments stop automatically.

• Plan 1 (Started course before Sept 2012, or Northern Ireland): Repayments trigger when earning over £26,900 a year (£2,241 a month).
• Plan 2 (Started course between Sept 2012 and July 2023 in England, or all Wales): Repayments trigger when earning over £27,295 a year (£2,274 a month).
• Plan 4 (Scotland): Repayments trigger when earning over £31,395 a year (£2,616 a month).
• Plan 5 (Started course from Sept 2023 onwards in England): Repayments trigger when earning over £25,000 a year (£2,083 a month).
• Postgraduate Loan (England & Wales): Repayments are 6% on earnings over £21,000 a year (£1,750 a month).

Extra Payment Options

• Voluntary Overpayments: You can log into your online SLC account to make manual, extra payments via card or bank transfer at any time to clear the balance faster.
• Note: Financial experts like MoneySavingExpert generally advise against voluntary extra payments unless you are a very high earner, because any remaining loan balance is completely written off after 30 to 40 years anyway (depending on your plan).

UK, Paying back your university student loan after course completion