When Is Your Student Loan Written Off? Rules for Plan 1, 2, 3 and 5 Explained

One of the least understood features of UK student loans is that they are eventually written off — cancelled entirely — even if you have never fully repaid them. The write-off date varies depending on which repayment plan you are on, and for some borrowers it represents the most likely outcome of their loan.

Which plan are you on?

Before checking your write-off date, you need to confirm your plan type:

• Plan 1: Started undergraduate study before September 2012 (England/Wales), or any time in Scotland or Northern Ireland
• Plan 2: Started undergraduate study on or after 1 September 2012 in England or Wales (this is the most common plan)
• Plan 3: Postgraduate loan (Masters or doctoral)
• Plan 5: Started undergraduate study on or after 1 August 2023 in England (new students from that point)

You can check your plan type and balance via the Student Loans Company online service or your payslip.

Plan 1: written off after 25 years

Plan 1 loans are written off 25 years after the April following your first due date of repayment. For most Plan 1 borrowers who graduated around 2009–2012, this means write-off falls somewhere in the late 2030s.

If you took your loan before 2006, slightly different rules apply — check your loan agreement or contact the Student Loans Company to confirm your exact write-off date.

Plan 1 borrowers in Scotland are written off at age 65, while those in England and Wales follow the 25-year rule. Scottish borrowers should verify which condition applies to their specific loan.

Plan 2: written off after 30 years

Plan 2 loans are written off 30 years after the April following graduation. For someone who graduated in 2015, write-off falls in April 2046. For a 2020 graduate, April 2051.

Plan 2 carries a relatively high repayment threshold (£27,295 in 2026/27) and low monthly repayments (9% of earnings above the threshold). Because of this, many Plan 2 borrowers — particularly those on average or below-average graduate salaries — will never fully repay their loan before the 30-year write-off. For them, the write-off is not an edge case; it is the probable outcome.

The Institute for Fiscal Studies estimated that around 75% of Plan 2 graduates would not fully repay before write-off under original projections, though this has shifted somewhat with inflation and interest rate changes.

Plan 3 (postgraduate): written off after 30 years

Postgraduate loans (Plan 3) are also written off 30 years after the April following the first repayment due date. Repayments are 6% of earnings above £21,000 (2026/27 threshold).

If you have both a Plan 2 and Plan 3 loan, repayments run concurrently — you pay 9% for Plan 2 and 6% for Plan 3, a combined 15% of income above each respective threshold.

Plan 5: written off after 40 years

Plan 5 loans apply to students starting undergraduate courses in England from August 2023 onwards. The write-off period is 40 years — significantly longer than Plan 2.

The repayment threshold for Plan 5 is lower (£25,000 in 2026/27 versus £27,295 for Plan 2), meaning repayments start sooner. The extended 40-year period and lower threshold were introduced to increase the proportion of borrowers who fully repay.

Plan 5 borrowers on higher graduate salaries are much more likely to fully repay before write-off. Those on lower to average salaries may still reach write-off with a residual balance outstanding.

Write-off if you reach age 65 (older Plan 1 borrowers)

Some older Plan 1 borrowers from Scotland have a write-off date tied to reaching age 65, rather than the 25-year rule. If you took out loans in the early 2000s or before, verify your specific terms.

Does the write-off happen automatically?

Yes. The Student Loans Company tracks your balance and write-off date. When the date passes, any remaining balance is automatically cancelled. You do not need to apply or take any action. Repayments via PAYE cease automatically once the loan is cleared or written off — HMRC updates your tax code accordingly.

Is a written-off student loan taxable?

No. Student loan write-offs are not treated as taxable income in the UK. HMRC does not treat the cancelled balance as a benefit or earnings. You will not receive a tax bill for the amount written off.

Should you overpay to clear before write-off?

This depends on whether you are on track to repay before write-off. If your projected balance would still be significant at write-off, voluntary overpayments just reduce that write-off amount without improving your financial position — you would have been better off saving or investing the money.

If you are on track to repay before write-off, overpaying can save interest. Use our student loan repayment calculator to project your balance over time and see whether write-off or full repayment is the more likely outcome for you.