"We are a non-profit making government-owned organisation that administers loans and grants to students in colleges and universities in the UK."
In many cases, it's never paid back in full, and the students don't ever need to worry about it.
From the perspective of many students, it's free money.
It's a sweet deal for employers to create a natural disincentive for people to ask for raises though, while keeping the outward appearance of fairness.
If you earn £21,000 and the threshold is £20,000, you only pay back a portion of £1,000, not all of the £21,000.
Nobody says no to an extra £700 if offered on a plate but the lower the % you get of a raise the less motivated you are to chase it.
In my experience, student loan repayments are, until you are way above the threshold, a relatively minor number on your paycheques; dwarfed by income tax, national insurance, and pension contributions.