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Repayments deducted from your pay based on your income, for your student loan.
Student loan repayments are deducted from your salary through PAYE, similar to tax. The repayment threshold and rate depend on your plan type (Plan 1, Plan 2, Plan 4, Plan 5, or Postgraduate Loan). Generally, you repay 9% of your income above the threshold (6% for postgraduate loans). Interest rates vary by plan. The loan is eventually written off after a set number of years.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.