How LLE Loan Repayments Work: Plan 5 Explained
Borrowing to study is easier to plan for when you know how paying it back works. Loans under the Lifelong Learning Entitlement (LLE) follow the Plan 5 repayment system, and the rules are fairly simple.
Repayments depend on what you earn
You only start repaying once you have left your course and earn above the repayment threshold. The threshold is £25,000 a year before tax, which works out at £2,083 a month or £480 a week.
Your repayments are based on your income above that line, not on the total you owe. Someone with a large loan and a modest salary pays the same as someone with a small loan and the same salary.
How much will you pay?
You pay 9% of your gross income above the threshold. For most people it’s deducted automatically from their pay, at the same time as Income Tax and National Insurance.
As a simple illustration, if you earn £30,000 a year, that’s £5,000 over the threshold. Nine per cent of £5,000 is £450 a year, or about £37.50 a month. If you earn less than £25,000, you pay nothing.
When do repayments stop?
Repayments continue until one of these happens:
- You have repaid the loan in full
- Your salary drops below the threshold
- 40 years have passed, at which point any remaining balance is cancelled
What if you already have a student loan?
Some people have an existing undergraduate loan and then use their leftover LLE entitlement for more undergraduate-level study. In that case you make a single repayment of 9% of your gross salary above the threshold. You don’t pay twice.
Does extra entitlement change the terms?
No. Priority additional entitlement, special additional entitlement and funding for repeat study all come with the usual maintenance support and repayment terms.
Keeping track of your balance
Your student finance account lets you check your LLE balance, follow your applications and find guidance on planning your learning. It’s worth checking before you commit to a course, so you know how much entitlement you have left.
The takeaway
LLE repayments are tied to your earnings, not your debt. You pay 9% of income above £25,000, the payments come out of your salary automatically, and they stop if your income drops or after 40 years.