About Student Loan Repayments on NHS Pay
Student loan repayments are automatically deducted from your NHS pay through PAYE, just like income tax and National Insurance. Your employer (NHS trust) calculates and deducts the correct amount each month based on your gross earnings.
Repayments are calculated on your total gross pay, not just your basic salary. This means unsocial hours enhancements, overtime, and any other taxable payments are all included when working out your student loan deduction. In months where you earn more from additional shifts or unsocial hours, your student loan repayment will also be higher.
It is possible to be on multiple student loan plans at the same time. For example, if you took out an undergraduate loan (Plan 2) and later a Postgraduate Loan, both will be repaid simultaneously. The undergraduate portion is deducted at 9% above its threshold, while the Postgraduate Loan is deducted at 6% above £21,000. Both deductions appear separately on your payslip.
Frequently Asked Questions
How are student loan repayments calculated on NHS pay?
Student loan repayments are calculated at 9% (or 6% for Postgraduate loans) of your gross earnings above the relevant repayment threshold. For example, on Plan 2 you repay 9% of everything you earn above £27,295 per year. Your NHS trust deducts this from your pay each month through PAYE. Use our
free calculator to see your exact monthly repayment.
Which student loan plan am I on?
Plan 1 applies if you started your course in England or Wales before September 2012. Plan 2 applies if you started in England or Wales from September 2012 onwards. Plan 4 is for Scottish students. Plan 5 is for English students who started from September 2023. If you are unsure, check your Student Loans Company (SLC) online account or contact them directly.
Do I repay student loans on unsocial hours pay?
Yes. Student loan repayments are calculated on your total gross pay, which includes basic salary, unsocial hours enhancements, overtime, and any other taxable payments. This means your repayments will be higher in months where you work more unsocial hours or overtime shifts.
Can I be on two student loan plans at the same time?
Yes. If you have both an undergraduate and a Postgraduate Loan, you will repay both simultaneously. The undergraduate loan (Plan 1, 2, 4, or 5) is repaid at 9% above its threshold, and the Postgraduate Loan is repaid at 6% above £21,000. Both deductions are taken from your pay each month and will appear as separate lines on your payslip.
When will my student loan be written off?
Plan 1 loans are written off 25 years after the April you were first eligible to repay. Plan 2 loans are written off 30 years after the April you were first eligible. Plan 4 loans are written off 30 years after the April you were first eligible, or when you turn 65 (whichever comes first). Plan 5 loans are written off 40 years after the April you were first eligible. Postgraduate Loans are written off 30 years after the April you were first eligible to repay.