If you have a Student Loan, your employer is legally obliged to make a repayment every month from your salary.
All employers – including umbrella companies – have to make deductions from your earnings to help repay your student loan. The amount deducted is forwarded to the government for credit to your Student Loan account. Each plan has a threshold for your weekly or monthly income. So you don’t make a payment if your earnings are under the threshold. If they are over the threshold, the repayment is calculated on the difference between the two. So if you earn above the threshold for Plan 1, 2 and 4 your repayment will be 9% of the amount you earn above it.
You only repay 6% of the amount you earn over the threshold for the Postgraduate Loan.
If you have a Plan 1, Plan 2 or Plan 4 loan and a Postgraduate Loan, you pay back 6% of your income over the Postgraduate Loan threshold. In addition, you’ll pay back 9% of your income over the Plan 1, Plan 2 or Plan 4 threshold.