Enter your annual salary and student loan plan, then hit Calculate to see your monthly repayment and 5-year projection.
2025/26 student loan thresholds at a glance
| Plan | Annual threshold | Rate | Written off after |
|---|---|---|---|
| Plan 1 | £26,065 | 9% | 25 years |
| Plan 2 | £28,470 | 9% | 30 years |
| Plan 4 (Scotland) | £32,745 | 9% | 30 years |
| Plan 5 | £25,000 | 9% | 40 years |
| Postgraduate Loan | £21,000 | 6% | 30 years |
Thresholds are reviewed annually each April. Write-off periods run from the April after you finished or left your course.
How Are Student Loan Repayments Calculated?
UK student loan repayments are income-contingent — they are based entirely on how much you earn above the threshold for your plan, not on your outstanding balance. This is fundamentally different from a bank loan. If your income drops below the threshold, repayments stop automatically and resume when your income rises above it again.
For Plans 1, 2, 4 and 5, you repay 9% of your income above the threshold. For the Postgraduate Loan, the rate is 6%. If you hold both a Plan 2 and a Postgraduate Loan, repayments for each are calculated separately and deducted together: 9% above the Plan 2 threshold plus 6% above the PGL threshold.
Which Student Loan Plan Am I On?
Your plan depends on when and where you started your course:
- Plan 1 — started an undergraduate course before September 2012, or studied in Northern Ireland.
- Plan 2 — started an undergraduate course in England or Wales between September 2012 and July 2023.
- Plan 4 — studied in Scotland (any start date).
- Plan 5 — started an undergraduate course in England from August 2023 onwards.
- Postgraduate Loan — a separate loan for Master's or Doctoral study. Can be held alongside any undergraduate plan.
If you are unsure which plan you are on, log in to your Student Loans Company (SLC) online account at studentloansrepayment.slc.co.uk. Your payslip will show which plan your employer is deducting under.
When Is My Student Loan Written Off?
All UK student loans are eventually written off if not repaid in full. The write-off period runs from the April after you finished or left your course: Plan 1 after 25 years (or age 65, whichever is sooner), Plans 2 and 4 after 30 years, Plan 5 after 40 years, and Postgraduate Loans after 30 years. Any remaining balance is cancelled at that point — you are never chased for the remainder.
Research by the Institute for Fiscal Studies suggests that the majority of Plan 2 and Plan 5 graduates will never fully repay their loans before the write-off date. For these borrowers, the student loan functions more like an additional income tax than a conventional debt, since total repayments are determined primarily by income rather than by the loan balance.
Does Interest Make My Balance Grow?
Yes — interest accrues on all student loan plans. For Plan 1 and Plan 4, the rate is the lower of RPI inflation or the Bank of England base rate plus 1% (currently around 3.2%). For Plan 5, interest is charged at RPI only (currently 3.2%). The Postgraduate Loan accrues interest at RPI plus 3% (currently 6.2%).
Plan 2 has the most complex interest structure: while studying and during the first year of repayment, interest is RPI plus 3% (6.2%). After that, the rate slides between RPI (3.2%) and RPI plus 3% (6.2%) depending on your income — lower earners pay the base rate, and those earning above £49,130 pay the maximum. For many Plan 2 borrowers, interest accumulation outpaces repayments in the early years of their career, causing the balance to grow before starting to fall.
Is It Worth Overpaying Your Student Loan?
Voluntary overpayments reduce your balance, but for most Plan 2 and Plan 5 borrowers the answer is almost always no. If you are projected to have the remainder written off before fully repaying, every extra pound you pay voluntarily reduces the amount that would have been cancelled for free. The only scenario where overpaying makes sense is if you are on track to repay the full balance before write-off — typically higher earners on Plan 1 with smaller balances.
Use the write-off projection feature in this calculator to check your position. If your simulation shows the loan being written off with a significant balance remaining, voluntary overpayments are likely to reduce your net benefit. If the simulation shows a paid-off outcome, it may be worth considering whether extra pension or ISA contributions would achieve a better return.
Frequently Asked Questions
How much do I repay on a £30,000 salary?
It depends on your plan. On Plan 2 (threshold £28,470), you repay 9% of £1,530 = £137.70/yr or about £11/month. On Plan 5 (threshold £25,000), you repay 9% of £5,000 = £450/yr or £37.50/month. On a Postgraduate Loan (threshold £21,000), you repay 6% of £9,000 = £540/yr or £45/month. Use this calculator for an exact figure based on your plan.
Does my student loan appear on my credit file?
No. UK student loans do not appear on your credit file and missing repayments has no negative impact on your credit score. However, mortgage lenders may ask about student loan repayments as part of their affordability assessment, since the monthly deduction reduces your disposable income. Our Mortgage Affordability Calculator accounts for monthly debt commitments including student loan repayments.
What happens to my student loan if I go self-employed?
If you are self-employed, student loan repayments are collected through Self Assessment rather than through PAYE. HMRC calculates your repayment based on your self-assessment taxable profit, applying the same threshold and rate as for employees. Repayments are included in your January tax bill alongside income tax and Class 4 National Insurance. Our Self-Employed Tax Calculator includes student loan repayments as part of its full tax breakdown.
Can I pause student loan repayments?
Repayments pause automatically whenever your income falls below the threshold — there is nothing you need to do. For employed borrowers, your employer simply stops deducting when your pay drops below the threshold. If you take a career break, move abroad, or become unemployed, you should notify the Student Loans Company. You cannot voluntarily pause repayments while earning above the threshold.
What if I have both a Plan 2 and a Postgraduate Loan?
Both loans are repaid simultaneously with separate deductions. Plan 2 repayments are 9% of income above £28,470, and PGL repayments are 6% of income above £21,000. The deductions are combined on your payslip. For example, on a £40,000 salary: Plan 2 repayment = 9% × (£40,000 − £28,470) = £1,037.70/yr; PGL repayment = 6% × (£40,000 − £21,000) = £1,140/yr; combined = £2,177.70/yr or £181/month. Select "Plan 2 + Postgraduate Loan" in the calculator above to see your combined repayment.
How does student loan repayment affect my take-home pay?
Student loan repayments are deducted from your gross pay alongside income tax and National Insurance, reducing your take-home. Unlike income tax and NI, student loan repayments are not reduced by salary sacrifice pension contributions — they are calculated on total gross earnings before pension sacrifice (for PAYE purposes, though Self Assessment uses profit). Use our Take Home Pay Calculator to see your full deductions including student loan.