The key idea
You only repay once your income is above a threshold, and repayments are taken as a percentage of income above it, like a payroll deduction. Any remaining balance is written off after a set period.
What this means
- Repayments scale with income, not the balance.
- If you earn under the threshold, you pay nothing that period.
- Interest applies, but the write-off date caps the real cost for many.
Frequently asked questions
Should I overpay my student loan?+
Often not, because repayments are income-based and the balance can be written off. Check the current thresholds before deciding.