One small mistake on your student loan can wreck your finances. Don’t be that person.

Taking out a student loan is common in the UK. It helps you pay for university. But if you are not careful, it can cost you a lot more than you think. Some student loan mistakes can leave you paying back more than you should.

Let’s look at the most common student loan mistakes. More importantly, let’s talk about how you can avoid them.

1. Not Knowing Which Plan You’re On

This is one of the biggest student loan mistakes. There are different plans—Plan 1, Plan 2, Plan 4, and the Postgraduate Loan. Each has different rules. Each has a different repayment threshold. If you don’t know your plan, you might pay too early. Or you might pay too much.

Tip: Check your plan on the Student Loans Company (SLC) website. Look at your loan documents. Always know which plan you’re on.

2. Starting Repayments Too Soon

Some people start paying before they have to. That’s another common student loan mistake. For example, Plan 2 repayments only start when you earn over £28,470 a year (as of 2025). If your employer is deducting money anyway, you are losing cash. You don’t get that back easily.

Tip: Keep an eye on your payslip. If money is being taken before you hit the threshold, speak to payroll.

3. Not Updating Your Contact Details

This sounds small. But it’s one of those student loan mistakes that can cost you later. If the SLC can’t reach you, they may miss telling you about changes. You might miss updates or payment errors. You may also get fines or miss deadlines.

Tip: Always update your phone number, email, and address with SLC when they change.

4. Forgetting to Tell HMRC You’re Abroad

Tip: If you go overseas, fill out an Overseas Income Assessment Form. This keeps your repayments fair and legal.

5. Paying Off Your Loan Too Early

It might sound smart to pay early. But this is a common student loan mistake. Most people won’t repay their full loan before it’s wiped off. For Plan 2 loans, that’s 30 years. Many people won’t earn enough in that time to pay all of it back. So paying extra means giving money you didn’t need to.

Tip: Unless you’re high-earning, think twice before making extra payments.

6. Not Checking If Your Loan Is Being Wiped

Student loans don’t last forever. They get wiped after a set time or if you’re permanently unable to work. Some people keep paying even when their loan is about to be cleared. That’s one of the most pointless student loan mistakes.

Tip: Know when your loan will be wiped. If you’re close to the end, stop paying extra.

7. Letting Overpayments Slide

Sometimes, employers or HMRC take too much. This leads to overpayments. Sadly, many people don’t ask for that money back. That’s money you worked for. Don’t let it go.

Tip: Check your Student Loan account every year. Ask for refunds on any overpayments.

8. Not Watching Your Payslips

If you don’t look at your payslips, you may not notice errors. You may be paying too much or too soon. This is one of the sneakiest student loan mistakes. Small errors can go unnoticed for years.

Tip: Review your payslips each month. Look for any student loan deductions. Make sure they’re correct.

9. Ignoring Changes in Interest

Interest rates on student loans can change. For example, Plan 2 loans are linked to inflation (RPI). The rate changes each September. If you’re not paying attention, you won’t know how fast your loan is growing. That’s one of those silent student loan mistakes. The loan grows, and you don’t even see it.

Tip: Stay informed about changes to interest rates. SLC updates their website regularly.

10. Trusting Employers To Handle It All

Some people think their employer will always get it right. But that’s not true. Your employer may deduct the wrong amount. They may use the wrong plan. They might not stop payments when they should. That’s one of the easiest student loan mistakes to avoid. You just need to stay alert.

Tip: Keep checking your tax code and student loan plan. Never assume everything is correct.

11. Missing Deadlines for Forms

Each year, SLC may ask for updates on your income – especially if you’re self-employed or living abroad.

Missing these deadlines can lead to trouble. They may guess your income. That could mean bigger payments than needed.

Tip: Set reminders for when forms are due. Don’t delay. Always send your paperwork on time.

12. Ignoring Your Loan Completely

Some people pretend their loan isn’t there. They don’t check it. They don’t track it. That’s one of the worst Student Loan Mistakes you can make. When you ignore your loan, things go wrong. You miss letters. You pay too much. You fall behind.

Tip: Check your online loan account every few months. Stay informed. Stay in control.

13. Thinking It’s “Free Money”

A loan is not free money. Some people think the government will just forget about it. That’s a dangerous Student Loan Mistake. While many won’t pay back the full amount, the loan can still affect your future. It impacts how much you take home. It may affect mortgage chances too.

Tip: Treat your student loan like real debt. Respect it. Plan for it.

14. Not Knowing How Much You Owe

Lots of people don’t even know the total they owe. This leads to confusion. It makes it harder to plan. That’s another classic Student Loan Mistake. It’s easy to fix.

Tip: Log into your SLC account. See the total. Make a note of it. Update it once a year.

15. Not Asking for Help

Many people make student loan mistakes simply because they don’t ask for help. They’re confused but stay silent. There’s no shame in not knowing.

Tip: If you’re unsure, call the Student Loans Company. Ask your university. Or speak to a financial advisor.

If you’re feeling lost with your student loan or worried about making student loan mistakes, Enrollmate.co.uk can help. They offer easy-to-understand guidance for UK students. Whether you’re studying now or already graduated, Enrollmate makes it simple to stay on top of your student loan and protect your finances.

Final Thoughts

Student Loan Mistakes are common. But most can be avoided. All it takes is a little attention and care. Remember:

• Know your plan.
• Watch your payslips.
• Stay in touch with SLC.
• Don’t pay more than you need to.

Your student loan shouldn’t ruin your money future. Learn the rules. Avoid the traps. Be smart. Don’t let Student Loan Mistakes cost you thousands.