Student loans in the UK operate under a repayment structure that is unlike most traditional debt. Rather than being a rigid sum that must be paid off within a short period, UK student loans are repaid based on your income and are eventually written off if not fully repaid.
But this leads to one crucial question, when does student loan get written off in the UK? In this guide, you’ll find a detailed breakdown of student loan write-off rules, including variations based on your repayment plan, country of residence, and special circumstances like disability or death.
Whether you’re a recent graduate or have been repaying for years, this article aims to clarify your situation and help you plan with confidence.
Why Are UK Student Loans Different from Traditional Loans?
Student loans in the UK are designed not just to finance education but to support students during and after university life.
Unlike commercial loans, which demand fixed repayments regardless of your financial situation, UK student loans are repaid based on what you earn, not what you owe.
You only start repaying when your income crosses a set threshold. The repayment is automatically deducted from your salary, and you pay a fixed percentage of the amount above the threshold. If your income drops, your repayments do too. And if you never earn enough, you might never repay at all.
This flexibility makes UK student loans fundamentally different, and means write-off policies are an essential part of the system, not an exception.
What Determines the Student Loan Repayment Plan You’re On?
Your repayment plan isn’t chosen by you, it’s assigned based on key criteria: the year you began your course, the country you lived in at that time, and the type of degree or qualification you pursued.
Let’s examine this further:
| Repayment Plan | Who It Applies To | Loan Type | Region |
|---|---|---|---|
| Plan 1 | Started before Sept 2012 | Undergraduate | England, Wales, Northern Ireland |
| Plan 2 | Sept 2012 – July 2023 | Undergraduate | England, Wales |
| Plan 4 | Any year (if studied in Scotland) | Undergraduate | Scotland |
| Plan 5 | From August 2023 | Undergraduate | England |
| Postgraduate Loan | From 2016 | Master’s/Doctorate | England, Wales |
Each of these plans comes with different repayment thresholds, interest rates, and, most importantly, write-off periods.
The Plan you are on determines your entire repayment journey, so identifying your plan is the first essential step to understanding when your loan may be cancelled.
Why Do Student Loan Write-Off Rules Differ Across the UK?
Education is a devolved matter in the UK, meaning that Scotland, Wales, Northern Ireland, and England each manage their own student finance systems. This has resulted in a patchwork of repayment plans and write-off rules.
For example:
- Scottish students benefit from free tuition and are assigned Plan 4, which has its own repayment terms.
- English students now fall under Plan 5 if they started university from 2023 onwards.
- Welsh students have access to maintenance grants as well as loans.
Because of these regional differences, the repayment plan and write-off period can vary significantly, even between two students who attended university in the same year but in different parts of the UK. It’s not a one-size-fits-all system.
When Does Student Loan Get Written Off?
This is the core question, and the answer depends entirely on the student loan repayment plan you’re on. Each plan has its own specific rules and write-off timeframes, which are determined by when and where you studied, as well as the type of loan you took out.
Let’s explore each plan in detail to help you understand exactly when your student loan may be cancelled, even if you haven’t fully repaid it.
Plan 1 – Write-Off Terms
If you started your university course before 1 September 2012, or if you are a student from Northern Ireland, you’re likely repaying your loan under Plan 1.
This was one of the earliest structured repayment plans in the UK and applies to many students who studied in the late 1990s or 2000s.
- If your first loan was issued after 1 September 2006: Your loan will be written off 25 years after the April when you were first due to begin repayments.
- If your first loan was issued before 1 September 2006: Your loan will be cancelled when you reach age 65, even if you haven’t repaid the full balance.
This plan reflects a time when tuition fees were lower, but repayment thresholds were also set at modest income levels.
Many borrowers on Plan 1 may never repay the full amount before the loan is written off, especially if their income remains close to the repayment threshold.
Plan 2 – Write-Off Terms
Plan 2 was introduced for students in England and Wales who began their undergraduate studies between September 2012 and July 2023. It marked a major shift in student finance, including a rise in tuition fees and a longer repayment window.
- Your student loan will be written off 30 years after the April in which you were first required to start repayments, usually the April after you graduate.
This plan applies to a large proportion of current graduates aged between 25 and 35. Although the loan amounts under Plan 2 are often much higher due to increased tuition fees, many borrowers will not repay the full balance before it is wiped after 30 years.
Plan 4 – For Scottish Students
Scottish students follow a different model, known as Plan 4. It’s managed by the Student Awards Agency Scotland (SAAS) and reflects the devolved education policy in Scotland, where tuition is free for most local students.
- If your first loan was issued after 1 August 2007: The loan will be written off 30 years after the April you became eligible to repay.
- If your loan began before that date: It will be written off when you turn 65, or 30 years after repayment began, whichever comes first.
Scottish students typically borrow less due to free tuition, but the write-off conditions still provide a safety net for those who don’t earn above the repayment threshold for a sustained period.
Plan 5 – New English Loan Structure
Plan 5 is the latest repayment plan, introduced for students in England who begin their undergraduate degrees on or after 1 August 2023.
It reflects newer government policy to manage the rising cost of higher education through longer repayment terms.
- Loans under Plan 5 are written off 40 years after the April you become eligible to start repaying.
This is currently the longest repayment term of any UK plan. It means that many borrowers could be repaying their loans well into their 60s, depending on their income and career path.
The intention is to increase the total amount repaid over time, but for lower and middle-income earners, the write-off still serves as a crucial safeguard.
Postgraduate Loan – England and Wales
If you’ve taken out a loan for a Master’s degree or doctoral course, you are on a separate Postgraduate Loan plan, which comes with its own terms.
- These loans are written off 30 years after the April when you were first required to start repayments.
Unlike undergraduate loans, postgraduate loans are not income-tiered across multiple plans, and are typically repaid simultaneously with any undergraduate loan (though under a separate repayment schedule).
This means you could be making repayments toward both your postgraduate and undergraduate loans at the same time, depending on your earnings.
Loan Plan Overview Table:
For quick reference, here’s a comparison of all major UK student loan plans and their respective write-off timelines:
| Loan Plan | Write-Off Point |
|---|---|
| Plan 1 | 25 years after April of first repayment or at age 65 |
| Plan 2 | 30 years after April of first repayment |
| Plan 4 | 30 years after April of first repayment or at age 65 |
| Plan 5 | 40 years after April of first repayment |
| Postgraduate Loan | 30 years after April of first repayment (England and Wales only) |
Understanding which repayment plan you’re on, and the timeline associated with it, empowers you to make informed decisions about your finances and offers reassurance that your student loan won’t last forever.
Can a Student Loan Be Cancelled Early Due to Illness or Disability?
Yes, a student loan can be cancelled early in cases of permanent disability or long-term illness that prevents you from working.
If you are unable to continue employment due to health reasons, the Student Loans Company allows early loan cancellation regardless of your repayment plan.
To apply, you must be receiving an eligible disability-related benefit, provide supporting medical evidence, and submit your Customer Reference Number (CRN) to the Student Loans Company.
Once your application is approved, your loan will be officially written off, and you will no longer be required to make any repayments.
This policy provides vital financial protection for individuals whose lives and earning capacity are permanently impacted by illness or disability, ensuring they are not burdened by debt.
What Happens to Student Loans After Death?
In the event of a borrower’s death, the UK student loan is automatically cancelled, regardless of how much is outstanding. This provides peace of mind for students and families, ensuring that the debt does not pass on or impact estates.
To finalise the cancellation, a family member or authorised representative must notify the Student Loans Company and provide:
- The borrower’s Customer Reference Number (CRN)
- An original or certified copy of the death certificate
Once this information is received and verified, the loan account is closed permanently. No further repayments will be collected, and the debt is removed entirely from the system.
This cancellation policy applies to all repayment plans, including undergraduate and postgraduate loans, and ensures that families are not burdened with financial obligations after a bereavement.
Should You Repay Early or Wait for Your Student Loan to Be Written Off?
It’s tempting to repay early, especially if you’re concerned about interest. However, early repayment is not always the financially sound choice, especially for lower or average earners.
Understanding the Long-Term Cost
Because repayment is income-based, you may never repay the full balance. In many cases, the majority of your loan may be wiped after 30 or 40 years. If you repay early, you risk paying more than you would have over time.
Real Example – Meet Sarah
Sarah graduated in 2013 and is on Plan 2. She borrowed £40,000 and now earns £31,000 per year. Her annual repayment is just over £540. At this rate, she will likely pay back less than half the loan by the time it’s written off in 2044.
If Sarah chooses to repay early, she could end up paying far more than she would otherwise. This is why financial advisers often recommend not making extra payments unless you’re a high-income earner likely to repay the full balance before the write-off.
What If You’re Overpaying or Deducted Too Soon?
Overpayments or early deductions on student loans can occur for several reasons, such as employers selecting the wrong repayment plan, starting deductions before they’re due, or continuing payments after the loan has already been cleared.
To address this, the Student Loans Company (SLC) now offers a convenient digital refund service that allows borrowers to claim back any overpaid amounts quickly and securely.
In the 2023/24 tax year alone, more than £61 million was refunded to borrowers who had been incorrectly charged.
To avoid such issues, it’s important to regularly review your payslips and annual loan statements to ensure the correct deductions are being made and your repayments accurately reflect your outstanding balance.
What Happens If You Move Abroad with a UK Student Loan?
If you move abroad, your UK student loan repayments don’t stop, you’re still required to make payments based on your income in your new country of residence.
Before relocating, you must:
- Contact the Student Loans Company to inform them of your move
- Complete the Overseas Income Assessment form provided by the SLC
- Submit supporting documents such as payslips, bank statements, or tax returns
Repayment thresholds are adjusted according to local living costs and income levels in your destination country.
If you fail to report your overseas income, the SLC may apply a default repayment rate, issue penalties, or place your account into arrears. Keeping your details updated ensures accurate payments and avoids unnecessary charges.
Conclusion
Student loans in the UK offer more flexibility than many realise. Repayments are based on income, and remaining balances are written off after a specific period. The timing of this write-off depends on your individual repayment plan and financial situation.
Instead of rushing to clear a loan you might never fully repay, it’s wiser to focus on understanding your plan, knowing your write-off timeline, and regularly monitoring your account.
For many graduates, student loans function more like a tax than a traditional debt. In several cases, the full amount may never be repaid, and that’s completely fine. The system is intentionally structured this way to support fairness and affordability.
Frequently Asked Questions
Does a student loan affect your mortgage or credit rating in the UK?
Student loans don’t appear on credit reports, but lenders do factor in monthly repayments when assessing affordability.
Can I switch from Plan 2 to Plan 5 if I started university recently?
No, plans are fixed based on your course start date and location. You cannot voluntarily switch plans.
How is interest calculated on student loans?
Interest is applied from the moment you take out the loan. It is based on inflation (RPI), and may vary with your income level.
Is it possible to reduce my loan balance?
Only through voluntary overpayments or refunds due to overcharging. Discounts or balance reductions are not available otherwise.
How do I know if my loan has already been written off?
You can check your repayment status via your Student Loans Company account or by requesting an annual statement.
What should I do if I was wrongly charged student loan repayments?
Contact the Student Loans Company and request a refund through their online refund tool.
Do part-time students follow the same write-off timelines?
Yes. Once you begin repayment, the same write-off rules apply depending on your repayment plan.
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