If you work part-time and have a student loan, the question of student loan part time wages probably feels more complicated than it should. Your hours change from week to week, your payslips vary, and sometimes money leaves your pay for your loan in months when you could have sworn you earned too little. None of this is a payroll error. Student loan repayments in the UK are calculated on what you earn each pay period, not on your annual salary.
In this guide we walk through exactly how repayments on part-time wages work for Plan 1, Plan 2 and Postgraduate Loan borrowers, using 2025/26-basis thresholds (the figures behind the 2026/27 tax year). Every calculation is worked step by step, with a table of repayments at several salary levels.
Quick answer: You repay 9% of earnings above £26,065 a year on Plan 1, 9% above £28,800 a year on Plan 2, and 6% above £21,000 a year on a Postgraduate Loan. Crucially, your employer works this out monthly: monthly earnings above the monthly threshold trigger a deduction, even if your annual pay is below the annual threshold. On £24,000 a year you pay nothing on Plan 1 or Plan 2; on £30,500 a year you would pay about £12.75 a month on Plan 2; on £35,000 a year you would pay £70 a month on a Postgraduate Loan.
Student loan part time wages: how repayments actually work
Most part-timers assume repayments work like this: if your annual salary is below the threshold, you pay nothing. That is wrong, and it is the single biggest source of confusion. Your employer does not look at your salary for the year. They look at your gross pay in each pay period, compare it to the threshold for that pay period, and deduct a percentage of whatever is above it.
The thresholds are published annually, but your payroll software converts them into monthly (or weekly) equivalents:
- Plan 1: £26,065 a year → £2,172.08 a month, 9% of earnings above it
- Plan 2: £28,800 a year → £2,400.00 a month, 9% of earnings above it
- Postgraduate Loan: £21,000 a year → £1,750.00 a month, 6% of earnings above it
So on Plan 2, earning £2,500 in one month means you repay 9% of £100, which is £9, even if your annual salary is £20,000. The deduction is based on the gross taxable pay in that single pay period, including overtime, bonuses and extra shifts.
Plan 1, Plan 2 and Postgraduate Loan: the thresholds for 2026/27
Which plan you are on depends on when you started your course and where in the UK you studied, and it matters enormously because the thresholds are very different.
Plan 1 applies to most borrowers who started an undergraduate course in England or Wales before 1 September 2012, plus all undergraduates in Scotland and Northern Ireland. Its threshold of £26,065 a year (£2,172.08 a month) is the lowest of the two undergraduate plans, so many Plan 1 part-timers hover right around the line.
Plan 2 applies to those who started in England or Wales on or after 1 September 2012. Its threshold is £28,800 a year (£2,400 a month), and you pay 9% of monthly earnings above it. Part-timers on Plan 2 are less likely to be caught, but overtime-heavy months can still push you over.
Postgraduate Loan (PGL) covers master’s and doctoral loans in England and Wales, with a much lower threshold of £21,000 a year (£1,750 a month) at a 6% rate. A modest part-time income of £22,000 a year already produces a monthly deduction. And if you also hold a Plan 1 or Plan 2 undergraduate loan, the two run at the same time — 6% above the PGL threshold and 9% above your undergraduate threshold on the same pay.
Repayments stop when the loan is repaid in full, or when it is written off: after 25 years for most Plan 1 borrowers (or at age 65, whichever comes first), after 30 years for Plan 2 borrowers, and after 30 years for Postgraduate Loans. They also stop if you move abroad and your income falls below the relevant overseas threshold, or if you pass away — the debt never transfers to anyone else.
Worked examples: what you’d actually pay
Let us work through three realistic part-time salaries with every step shown. If you want to sanity-check your own figures against your contracted hours, a pro rata salary calculator is a handy way to turn weekly hours and an hourly rate into an annual salary first.
Example 1: £24,000 a year, Plan 2
Monthly gross pay: £24,000 ÷ 12 = £2,000.00.
Plan 2 monthly threshold: £2,400.00.
£2,000 is below £2,400, so the excess is £0. Repayment: £0 per month.
On Plan 1, the same applies: £2,000 is below the £2,172.08 threshold, so still £0. But on a Postgraduate Loan: £2,000 − £1,750 = £250 excess; 6% × £250 = £15.00 per month. That is £180 a year from a salary many people would assume was too low to trigger anything.
Example 2: £30,500 a year, Plan 2
Monthly gross pay: £30,500 ÷ 12 = £2,541.67.
Plan 2 monthly threshold: £2,400.00.
Excess: £2,541.67 − £2,400.00 = £141.67.
Repayment: 9% × £141.67 = £12.75 per month (about £153 a year). Two part-timers on the same hourly rate can have very different experiences here: one earns £2,350 a month and pays nothing, while the other picks up one extra shift a month and pays £12.75.
Example 3: £35,000 a year, Postgraduate Loan
Monthly gross pay: £35,000 ÷ 12 = £2,916.67.
PGL monthly threshold: £1,750.00.
Excess: £2,916.67 − £1,750.00 = £1,166.67.
Repayment: 6% × £1,166.67 = £70.00 per month (£840 a year).
If that same borrower also holds a Plan 2 undergraduate loan, the two deductions stack. Plan 2 excess: £2,916.67 − £2,400.00 = £516.67; 9% × £516.67 = £46.50. Total student loan deductions that month: £70.00 + £46.50 = £116.50. That combined figure is the one that shocks people, so always check whether you owe on both plans.
Here is a summary of monthly repayments at several salary levels, assuming even pay across the year (rounded to the nearest pound):
| Annual salary | Monthly gross | Plan 1 (9%) | Plan 2 (9%) | Postgraduate (6%) |
|---|---|---|---|---|
| £22,000 | £1,833 | £0 | £0 | £5 |
| £25,000 | £2,083 | £0 | £0 | £20 |
| £30,000 | £2,500 | £30 | £9 | £45 |
| £35,000 | £2,917 | £67 | £47 | £70 |
| £40,000 | £3,333 | £105 | £84 | £95 |
The pattern: Postgraduate Loan borrowers start paying earliest, Plan 1 borrowers on typical part-time salaries often sit right on the boundary, and Plan 2 borrowers only see meaningful deductions once monthly pay is comfortably above £2,400.
Why a busy month can trigger repayments even under the annual threshold
Suppose you are on Plan 2 and usually earn £1,800 a month — well under the £2,400 threshold, paying nothing. In December you cover extra shifts and earn £2,650. Your employer deducts 9% of the £250 excess: £22.50 for that month. In January you are back to £1,800 and repayments stop again.
Your annual salary might be £22,300 — below the £28,800 threshold — yet you still made a repayment. That feels wrong, but it is how the system works. There is no annual reconciliation for employee deductions: HMRC does not add up your twelve months at year end and refund the December deduction because your annual total was under the threshold. The monthly calculation is final.
It works in reverse too. If your earnings drop below the monthly threshold, repayments stop immediately — no lag, no notice period, nothing to apply for. Cut your hours, leave a job, or simply have a quiet month, and the deduction disappears from that pay period onward.
Weekly-paid part-timers follow the same logic with weekly thresholds: £501.25 a week for Plan 1, £553.85 for Plan 2, and £403.85 for the Postgraduate Loan. A single week of overtime can push a weekly-paid worker over the line exactly the same way.
The details part-timers often miss
A few finer points. First, multiple jobs do not combine for the threshold. If you earn £1,600 a month from one job and £1,200 from another, neither employer deducts Plan 2 repayments, because each looks only at the pay passing through its own payroll.
Second, self-employed income is assessed annually. If you are both employed and self-employed, the employed pay is handled monthly through payroll while the self-employment profit goes through Self Assessment — the two systems run side by side.
Third, repayments never take you below the threshold. The 9% or 6% only applies to the slice above it, so there is no cliff edge.
Fourth, check which plan you are on. Borrowers who did an undergraduate degree and then a master’s are the classic case of paying both rates at once without realising. Your Student Loans Company account shows your plan, and your payslip deduction code often hints at it too.
Finally, thresholds move every April. The figures in this article are on a 2025/26 basis. A quick check each spring is worth the two minutes.
FAQ
Do I pay student loan on part-time wages if I earn under £28,800 a year?
It depends on your monthly pay, not your annual salary. On Plan 2, you only repay in months where gross pay exceeds £2,400. On a Postgraduate Loan the monthly trigger is just £1,750, so many part-timers under £28,800 still pay.
How is the monthly threshold worked out?
For Plan 2 that is £28,800 ÷ 12 = £2,400. For Plan 1 it is £26,065 ÷ 12 = £2,172.08, and for the Postgraduate Loan £21,000 ÷ 12 = £1,750. Weekly-paid workers divide the annual figure by 52.
What if I have two part-time jobs?
Each job is assessed separately. Repayments are only deducted from a job where that job’s pay exceeds the monthly threshold. Two jobs of £1,500 a month each produce no Plan 2 deductions, even though your combined income is £3,000 a month.
Can I get a refund if I overpaid in a busy month?
Generally no. Employer deductions based on monthly earnings are not reconciled against your annual income, so a deduction in a month where you crossed the threshold stands even if your yearly earnings were below it.
Do student loan repayments affect my income tax?
No. The repayment is calculated on your gross pay and deducted after tax; it does not reduce your taxable income and does not change your tax code. It is also separate from National Insurance, which has its own thresholds.
When do my repayments stop for good?
When the balance is cleared, when the loan is written off (25 years for most Plan 1 borrowers, 30 years for Plan 2 and Postgraduate Loans), or when your earnings stay below the threshold. You never need to apply to stop — your employer handles it automatically each pay period.
Conclusion
The whole system clicks once you remember the monthly rule. Student loan repayments on part-time wages are not a judgement on your annual salary; they are a simple monthly test — did this pay period clear the threshold, and by how much? Work out your monthly gross, subtract £2,172.08, £2,400 or £1,750 depending on your plan, and take 9% or 6% of the remainder. Do that, and no payslip will ever surprise you again.