Can you Salary Sacrifice student loan repayment(s)

Dear Team,

partner has £30k in Student Loan to repay.
Looking to repay it ASAP as the interest on it now is 7.6%!!

Can you increase your repayments via your employer payslip?
If so - is it on Gross salary - ie reduces your Tax and NI costs?

The current default is 9% which will barely cover the interest charges.
So looking to do - a bit like pension - and increase the deductions from monthly payslip.
Like to avoid having to pay off the loan from Net Pay as it effectively costs more (when considering the Tax and NI that's already been paid on earnings).


  • JH_BEM
    JH_BEM Posts: 3
    First Post
    For added context - historically - it was seen that you would just pay the obligatory payment and leave it at that.
    However, we did some quick maths at 9% (I guess it can go up/down) then over the 30year period before the loan is written off that would be a total payment of over £100k... more than 3x the original loan amount.

    So I think more so in this current age of higher rates the sooner it can be paid the better.
    Hence why we are looking at all possible ways to pay it off asap.
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