Calculate your monthly student loan repayments based on your income and loan type.
| Plan | Threshold | Rate | Write-off |
|---|---|---|---|
| Plan 1 | £26,900/year | 9% | 25 years after April following graduation, or age 65 |
| Plan 2 | £29,385/year | 9% | 30 years after April following graduation |
| Plan 4 | £33,795/year | 9% | 30 years after April following graduation, or age 65 |
| Plan 5 | £25,000/year | 9% | 40 years after April following graduation |
| Postgraduate | £21,000/year | 6% | 30 years after April following graduation |
| Plan | Threshold | Income over threshold | Yearly | Monthly |
|---|---|---|---|---|
| Plan 1 | £26,900 | £8,100 | £729.00 | £60.75 |
| Plan 2 | £29,385 | £5,615 | £505.35 | £42.11 |
| Plan 4 | £33,795 | £1,205 | £108.45 | £9.04 |
| Plan 5 | £25,000 | £10,000 | £900.00 | £75.00 |
The same salary gives very different deductions depending on when and where you studied. A Plan 5 graduate repays more than twice as much as someone on Plan 2, because the threshold is lower.
Plan 2 takes 9% of £10,615, which is £955.35 a year. The Postgraduate Loan takes a separate 6% of everything over £21,000, which is £1,140. Together that's £2,095.35 a year, or about £174.61 a month.
Repayments depend on what you earn, not on how much you owe. Many Plan 2 borrowers will never clear the balance before it's written off, which is why paying extra early often doesn't save money. It's worth modelling the full term before you overpay.
Interest is added from the day the first payment reaches you. On Plan 2 the rate rises with your income, from RPI on lower earnings up to RPI plus 3% on higher earnings, so this calculator's projection is an estimate. The Student Loans Company publishes the current rates each September.
If you're employed, repayments come out through PAYE alongside income tax, and your payslip shows them. Tell your employer which plan you're on (a new starter checklist asks), or you could be put on the wrong one.
You repay 9% of your income above your plan's threshold (6% for a Postgraduate Loan). On Plan 2 in 2026/27 the threshold is £29,385, so on a £35,000 salary you repay 9% of £5,615, which is £505.35 a year or about £42 a month.
No. If your income is below the threshold for your plan, nothing is taken. Repayments are worked out each pay period, so a one-off bonus month can trigger a deduction. If your total income for the year ends up below the threshold, you can ask the Student Loans Company for a refund.
If you have two undergraduate plans, such as Plan 1 and Plan 2, you still pay 9% in total, starting from the lower threshold. A Postgraduate Loan is repaid separately at 6% on top of any undergraduate repayment.
Plan 1 loans are usually written off 25 years after you were first due to repay, Plan 2, Plan 4 and Postgraduate Loans after 30 years, and Plan 5 after 40 years. Older Plan 1 and Plan 4 loans can instead be written off at age 65. Any balance left is cancelled and does not pass to anyone else.
If you are self-employed, student loan repayments are worked out through your Self Assessment tax return and paid with your tax bill, using the same thresholds and rates.
Source: GOV.UK: Repaying your student loan. General information, not financial advice.
Plan 1: Started before Sept 2012 (England/Wales) or any time in NI
Plan 2: Started Sept 2012 onwards (England/Wales)
Plan 4: Scotland
Plan 5: Started Aug 2023 onwards (England)
Postgraduate: Master's or PhD loan from 2016 onwards
Plan 1: Lower of RPI or Bank of England base rate + 1%
Plan 2: RPI + up to 3% (income-based while studying/earning)
Plan 4: Lower of RPI or Bank of England base rate + 1%
Plan 5: RPI only (capped)
Postgrad: RPI + 3%