I have significant student loan debt.

I am on plan 2 repayment and just received my first payslip.

I earn £22k and so by their rules I need to pay back 9% of my annual salary over £21k that being in my case: £(1000*0.09)/12=£7.5 per month.

Yet on my first payslip they have taken £53.

I am wondering why this might be the case.

It seems like they have taken all the payments from now until the end of the tax year, April 2018 that is £7.5 for each of the months until then (Sept,...,Mar) giving 7*£7.5=£52.5 which isn't £53 exactly anyway????

I am wondering exactly what is going on here and can anyone explain why they have taken so much more than the £7.5 I think they should be taking?


(BTW this a a plan 2 repayment scheme for a English student loan)

1 Answer 1


Your exact salary is in their table of examples shown here. They don't do fractions of pounds, so your monthly amount due should be rounded down to exactly £7.

So, either someone has made a mistake, or your payslip earnings [once annualized] project that you'll gross more than £22,000 of income. Did you receive any kind of signing bonus or payment of arrears in your first payslip?

For a monthly repayment amount of £53 on a Plan 2 loan, you'd have to be earning at least £28,067 annually (£2,339 monthly).

Here's my guess

Your first payslip is for one month (£1,833.33) plus one week (£423.08) plus 1 day (£84.62) totaling £2,341.03.

Subtract the monthly threshold of £1750, this leaves £591.03 subject to repayments. Take 9% of that - it comes to £53.19. Rounded down, that's £53.00

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