CSLM16025 - SL repayments: calculation of loan repayments: when do repayments stop?
Source: gov.uk (2025-04-06)


Repayments will stop in the following circumstances

The loan is repaid

Repayment of the loan may be by one or more of the following methods
- Deductions from earnings
- Self Assessment
- Voluntary payment to the Student Loans Company
For borrowers nearing the end of their loan who are wholly PAYE or who are a mixture of PAYE and Self Assessment (SA) the SLC offer a direct debit arrangement. This removes the borrower from the HMRC collection process altogether and prevents the borrower from over-repaying their loan.

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The borrower dies

Student loan repayments are due on earnings that relate to a period before an employee dies. Therefore, any payments made for a period relating before the date of death will be liable to student loan deductions. For example, wages, holidays accrued or bonus payments

If the borrower self assesses, the final year of liability for Student Loans and or Postgraduate Loan repayments will be the year in which death occurred.

You need to let SLC know that the person has died and provide evidence (for example an original death certificate), as well as the person’s Customer Reference Number.

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Plan 1

When your Plan 1 loan gets written off depends on when you were paid the first loan for your course.

If you were paid the first loan on or after 1 September 2006

The loans for your course will be written off 25 years after the April you were first due to repay.

If you were paid the first loan before 1 September 2006

The loans for your course will be written off when you’re 65.

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Plan 2

Plan 2 loans are written off 30 years after the April you were first due to repay.

Plan 4

When your Plan 4 loan gets written off depends on when you were paid the first loan for your course.

If you were paid the first loan on or after 1 August 2007

The loans for your course will be written off 30 years after the April you were first due to repay.

If you were paid the first loan before 1 August 2007

The loans for your course will be written off when you’re 65, or 30 years after the April you were first due to repay – whichever comes first.

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Plan 5

Plan 5 loans are written off 40 years after the April you were first due to repay

Postgraduate Loans

If you’re a student from England or Wales, your Postgraduate Loan will be written off 30 years after the April you were first due to repay.

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The borrower receives a disability related benefit and is permanently unfit for work

It will be the borrower's responsibility to negotiate cancellation of the loan with the Student Loans Company. HMRC are not involved.

You will need to provide evidence to the Student loans company for them to assess if the loan will be cancelled.

If the borrower is employed, the employer will continue to make Student and or Postgraduate Loan deductions from payments made until a Stop Notice is received from HMRC.

If the borrower self assesses, the final year of liability for Student and or Postgraduate Loan repayments will be the year prior to the cancellation of the loan.

You can find more information on gov.uk (https://www.gov.uk/guidance/student-loan-cancellation-permanently-unfit-to-work).

In addition, if the borrower emigrates from the UK or is otherwise not resident for tax purposes, HMRC will cease to collect any Student and or Postgraduate Loan repayments and the Student Loans Company will assume responsibility.