[ˈstjuːdənt ləʊn dɪˈdʌkʃᵊnz]
Student Loan Deductions are repayments of student loans that an employer automatically deducts from an employee's salary through the PAYE system.
Student Loan Deductions are repayments of an individual's student loan that an employer automatically deducts from the individual's salary through the PAYE system when they earn above a certain threshold. These repayments are sent to HMRC, which are then sent to the Student Loan Company.
The amount required to pay depends on the Student Loan Plan the individual is on. The rate of interest also depends on the given Student Loan Plan. So for example, individuals on Student Loan Plan 2 must pay 6% of their income over the threshold of £27,295 per year for the 2023/24 Tax Year.
Repayments start on the 6th April of the year after graduation. Most student loans are written off thirty years after repayments started.
Self-employed individuals must pay their student loan payments through their Self Assessment.
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