When Is Your Student Loan Written Off in the UK?

Your UK student loan is automatically written off after a fixed period — 40 years for Plan 5 and 30 years for Plan 2 — regardless of how much is left. Most graduates never repay the full amount before this happens.

Last reviewed: 30 May 2026 · 2 min read

Key Facts

Plan 5 loans are written off 40 years after you start repaying
Plan 2 loans are written off 30 years after the April you graduate
The write-off is tax-free and doesn't affect your credit score

How write-off works by plan

Each repayment plan has its own write-off period. Plan 5, which covers most students who started from 2023, is written off 40 years after the first April you were due to repay. Plan 2 is written off 30 years after the April following graduation.

When that date arrives, whatever balance remains simply disappears. You don't have to apply for it, it isn't taxed, and it has no effect on your credit because the loan was never on your file in the first place.

Why most people never clear the loan

Because repayments are based on income rather than the balance, huge numbers of graduates pay for the full term and still have a balance written off at the end. On Plan 5's 40-year term especially, only higher earners tend to clear the loan entirely.

This is why financial advisers often describe the loan as closer to a graduate tax. Chasing to repay it early can mean handing over money that would have been wiped anyway.

FAQ

Frequently Asked Questions

Is it worth overpaying to clear my loan before write-off? +

Usually only if you're a high earner who will definitely repay the whole balance before the write-off date. For everyone else, overpaying risks giving the government money that would have been written off anyway. Run your numbers through a student loan calculator before deciding.

Does the write-off count as taxable income? +

No. When your student loan is written off, the cancelled balance is not treated as income and you won't pay any tax on it. It simply vanishes from your account with no financial consequence to you.

What happens to my student loan if I move abroad? +

You still have to repay it. You must tell the Student Loans Company you're leaving and provide your income so they can set repayments based on the threshold for that country. Ignoring this can lead to fixed monthly charges and the highest interest rate being applied.

Topics covered

student loans write off plan 5

This article is for informational purposes only and does not constitute financial advice. Always do your own research or speak to a qualified financial adviser before making financial decisions.