Student Loan Repayment Calculator
2026/27Thresholds: 2026/27. Interest and cancellation rules checked 4 October 2026.
Plan 5: earliest repayments began April 2026
England courses starting from August 2023 generally use Plan 5. Repayments could first become due from April 2026, depending on when you leave or finish the course and your income. Check SLC for your plan and the April first due to repay; later starters do not all begin together.
UK student loan repayments work differently from regular debt. You only repay when earning above your plan's threshold, at 9% of income above that amount. Most Plan 2 borrowers won't fully repay before write-off.
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Your student loan won't affect your credit score, but lenders will consider your reduced take-home pay. A common misconception is that repaying early is always beneficial – most Plan 2 borrowers won't clear their balance before the 30-year write-off.
Understanding your repayments helps with budgeting. Enter your salary and loan details below to see your monthly deductions.
Student Loan Repayment Calculator
Estimate your student loan repayments based on 2026/27 thresholds and rates
Your salary before tax and deductions
England: Sept 2012–July 2023; Wales: Sept 2012 onwards (check your SLC plan)
Your Student Loan Repayments
Based on Plan 2 thresholds for 2026/27 tax year
Monthly Average (Annualised Estimate)
£42.11
Actual payslip deductions use pay-period thresholds and whole-pound rounding
Total Annual Repayment
£505.35
1.4% of your gross salary
Repayment Breakdown
Plan 2
9% on income above £29,385.00
£42.11/month
£505.35/year
Effective Marginal Rate
On each additional £1 you earn above threshold, you'll repay 9p in student loan repayments – on top of income tax and National Insurance.
These are annualised estimates for steady earnings. A bonus or uneven pay can change payroll deductions; check your payslip and SLC account for actual amounts.
Want to see your full take-home after all deductions?
Try the Take-Home Pay Calculator →Balance and Cancellation Scenario (Optional)
Monthly repayments above do not depend on your balance. This scenario covers the selected main loan only, after its first repayment April.
Starting interest assumption: 4.82% under September 2026–August 2027 rules. Plan 2 is income-dependent and capped at 6%; Plans 1/4 currently 4.1%, Plan 5 4.1%, postgraduate 6%. Interest affects the balance, not your income-based deduction.
Repayment figures are annualised estimates for steady UK earnings, not exact payslip deductions. Payroll uses pay-period thresholds and rounds repayments down. Overseas rules, multiple undergraduate plans and arrears need a separate assessment.
SLC repayment and interest guidance →2026/27 Repayment Thresholds
Current thresholds and write-off rules by plan
| Plan | Threshold | Rate | Write-off |
|---|---|---|---|
| Plan 1 | £26,900.00 | 9% | 25 years from first repayment April if first loan paid from 1 September 2006; otherwise age 65 |
| Plan 2 | £29,385.00 | 9% | 30 years from the April first due to repay |
| Plan 4 | £33,795.00 | 9% | 30 years from first repayment April; first loans before 1 August 2007 cancel at age 65 if sooner |
| Plan 5 | £25,000.00 | 9% | 40 years from the April first due to repay |
| Postgraduate Loan | £21,000.00 | 6% | 30 years from the April first due to repay |
Repayments at Different Salaries
How Plan 2 repayments scale with income
£30,000.00 salary
£4.61/mo
£55.35/year
£40,000.00 salary
£79.61/mo
£955.35/year
£50,000.00 salary
£154.61/mo
£1,855.35/year
£75,000.00 salary
£342.11/mo
£4,105.35/year
📊 Track your student loan repayments
Emma connects to your bank to track repayments, monitor spending, and help you budget around your loan deductions.
Try Emma for freeWhat this means for your pay packet
Your student loan repayment is 9% of everything you earn above your plan's threshold — it's not a debt that gets bigger if you delay paying. It comes straight off your gross salary like tax, so a £35,000 salary on Plan 2 (£29,385 threshold) means about £42 a month in deductions.
The crucial point most graduates miss: for Plan 1 and Plan 2, most people never repay in full before the loan is written off (30 years for Plan 1/2, 40 years for Plan 5). Voluntary overpayments rarely make financial sense unless you're a high earner expected to clear the balance — your money usually works harder in a pension or ISA. To see your loan deduction inside your full payslip, run the Take-Home Pay Calculator.
Plan 5: What's Different?
Plan 5 applies to anyone who started an undergraduate course in England from August 2023 onwards. While the repayment rate is still 9%, there are important differences from Plan 2 that affect how much you'll repay over your lifetime.
Lower Threshold
Plan 5's repayment threshold is £25,000, compared to £29,385 for Plan 2. This means you start repaying sooner and on a larger portion of your income.
40-Year Write-Off
Plan 5 loans are written off after 40 years, not 30. That's an extra decade of potential repayments before any remaining balance is forgiven.
RPI-Only Interest
Plan 5 charges interest at RPI only, with no income-based uplift. Plan 2 can charge up to RPI + 3%, so Plan 5 interest is lower in real terms.
More Graduates Will Repay in Full
The combination of a lower threshold and longer write-off means many Plan 5 graduates will repay their loan in full. That sounds positive — but it often means paying more over a lifetime than Plan 2 borrowers who benefit from write-off.
Plan 2 vs Plan 5 Comparison
| Feature | Plan 2 | Plan 5 |
|---|---|---|
| Repayment threshold | £29,385/year | £25,000/year |
| Repayment rate | 9% | 9% |
| Write-off period | 30 years | 40 years |
| Interest rate | RPI + up to 3% | RPI only |
| Likely to repay in full? | Most won't | Many will |
What Affects Your Student Loan Repayments?
Your Income
Repayments are calculated as a percentage of income above your plan's threshold. Earn £30,000 on Plan 2? You repay 9% of £615 (the amount above £29,385), not 9% of your full salary.
Your Loan Plan
Different plans have different thresholds. Plan 4 (Scotland) has the highest at £33,795, while Postgraduate loans start at just £21,000. This significantly affects when you start repaying.
Multiple Loans
If you have both an undergraduate and postgraduate loan, you repay both simultaneously. This means up to 15% of income above thresholds (9% + 6%) could go towards loan repayments.
Threshold Changes
The government sets thresholds annually. Plan 2's threshold was frozen at £29,385 until 2027. If your salary stays the same but thresholds freeze while wages rise, more people repay more.
Key Insight
Student loan repayments work like an extra tax. On Plan 2, earning £40,000 means a combined marginal rate of 37% (20% tax + 8% NI + 9% student loan) on income between £29,385 and £50,270 – higher than a non-graduate higher-rate taxpayer!
Common Mistakes People Make
Thinking it's 9% of your whole salary
It's 9% of income above the threshold, not your entire salary. At £35,000 on Plan 2, you repay 9% of £5,615 (£505/year), not £3,150.
Overpaying when not required
Most Plan 2 graduates won't fully repay before write-off. Making voluntary overpayments could mean paying more than you'd otherwise owe. Only overpay if you'll definitely clear the balance before the 30-year mark.
Not updating HMRC when income drops
If your income falls below the threshold (e.g., going part-time, career break), repayments should stop automatically via PAYE. For self-employed, update your Self Assessment or you may overpay.
Confusing loan type with university location
Your plan depends on where you lived when starting your course, not where you studied. An English student at Edinburgh Uni is on Plan 2, not Plan 4.
Continuing to pay after loan is cleared
HMRC doesn't automatically stop deductions when your loan is paid off. It can take months to process. If you're close to clearing your loan, check your balance with the Student Loans Company.
Which Plan Am I On?
| Plan | Who it applies to |
|---|---|
| Plan 1 | Started before Sept 2012 in England/Wales, OR anytime in Northern Ireland |
| Plan 2 | Started Sept 2012 or later in England/Wales (before Sept 2023) |
| Plan 4 | Scotland – this replaced Plan 1 for Scottish students in April 2021 |
| Plan 5 | Started Sept 2023 or later in England (new 40-year write-off) |
| Postgraduate | Master's or Doctoral loan (in addition to undergraduate) |
Not sure? Log in to your Student Loans Company account to check your loan type and balance.
Frequently Asked Questions
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Frequently Asked Questions
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