On £20,000 a year you repay nothing towards a Plan 4 loan. Repayments only start above £33,795, and they stop again automatically if your income falls back below it.
| Gross salary | £20,000 |
| Plan 4 threshold | £33,795 |
| Income above the threshold | £0 |
| Repayment rate | 9% |
| Monthly repayment | £0.00 |
| Weekly repayment | £0.00 |
| Annual repayment | £0 |
| Share of gross pay | 0.0% |
This is the student loan deduction on its own. Income tax and National Insurance come out of the same payslip and are calculated separately, so your take-home pay will be lower than salary minus this figure.
Student loan deduction only. Income tax and National Insurance are separate.
Which plan you are on is decided by where and when you studied, not by choice — but it changes the monthly figure a lot.
| Plan | Threshold | Monthly on £20,000 |
|---|---|---|
| Plan 1 | £26,900 | — |
| Plan 2 | £29,385 | — |
| Plan 4 | £33,795 | — |
| Plan 5 | £25,000 | — |
| Postgraduate Loan | £21,000 | — |
You studied in Scotland and your loan is with the Student Awards Agency Scotland.
Interest: currently 4.1%. Set on the same basis as Plan 1 — RPI, or Bank Base Rate plus 1%, whichever is lower. Write-off: 30 years after repayments were due to start.
Nothing. Plan 4 only takes 9% of income above £33,795, and £20,000 is below that threshold. Repayments restart automatically if your income rises.
No. Repayments depend only on your income, never on how much you borrowed. The balance affects how long you keep paying, not what leaves your payslip.
A Plan 4 loan is written off 30 years after you became due to repay, and any remaining balance is cancelled. It is not passed on and it does not affect your estate.
It is taken from your gross pay through PAYE, alongside income tax and National Insurance, but it is calculated separately from them.
Figures checked 18 August 2026 against GOV.UK and Save the Student. This is information, not financial advice, and your own payslip is the authority on what you actually pay.