UK Student Loan Repayment Calculator
Calculate your annual student loan repayments for 2025/26 or 2024/25. Supports all UK plans: Plan 1, 2, 4, 5, and Postgraduate Loan. Select all plans that apply to you — each is calculated independently.
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Each plan has its own dedicated page with 2025-26 & 2026-27 thresholds, worked examples at common salaries, and eligibility details.
How UK student loan repayments work
A UK student loan behaves more like a graduate tax than a normal debt. You repay a percentage of income above a threshold — not a fixed amount based on what you borrowed — and if your income is below the threshold you repay nothing that period, no matter how large the balance. Plans 1, 2, 4 and 5 take 9% of income over their threshold; the Postgraduate Loan takes 6%.
For employees, repayments are deducted automatically through PAYE once a pay packet exceeds the weekly or monthly equivalent of the threshold. Because it is assessed per pay period, a one-off bonus month can trigger a deduction even if your annual income is modest. Self-employed borrowers pay through Self Assessment.
The five plans and their 2026/27 thresholds
| Plan | Who | Threshold | Rate | Written off |
|---|---|---|---|---|
| Plan 1 | Pre-2012 E&W; NI | £26,900 | 9% | 25 yrs |
| Plan 2 | E&W 2012–2023 | £29,385 | 9% | 30 yrs |
| Plan 4 | Scotland | £33,795 | 9% | 30 yrs |
| Plan 5 | E&W from 2023 | £25,000 | 9% | 40 yrs |
| Postgraduate | Master's / doctoral | £21,000 | 6% | 30 yrs |
Hold more than one plan and they stack: a graduate with a Plan 2 or Plan 5 loan and a Postgraduate Loan repays 9% + 6% = 15% across the band above both thresholds.
Interest, write-off, and whether to overpay
Interest varies by plan: Plan 1 and Plan 4 are capped at the lower of RPI or base rate plus 1%; Plan 2 ranges from RPI to RPI + 3% by income; Plan 5 is RPI only. But because repayments are income-based and the balance is cancelled after the plan term, the headline interest rate matters far less than it would on a normal loan.
That is why overpaying is usually the wrong move. On Plan 5's 40-year term especially, a large share of borrowers never clear the loan before write-off, so voluntary payments simply hand over money that would otherwise have been cancelled. Overpaying only helps high earners who are on track to repay in full well before the write-off date — model your own trajectory before deciding.
Frequently asked questions
What are the different student loan plans in the UK?
There are five main plans. Plan 1: started before September 2012 in England/Wales, or any time in Northern Ireland. Plan 2: English/Welsh students from 2012 to 2023. Plan 4: Scottish students. Plan 5: English/Welsh students from 2023. Postgraduate Loan: master's and doctoral loans. You can hold more than one — for example a Plan 2 or Plan 5 undergraduate loan plus a Postgraduate Loan.
How are student loan repayments calculated?
As a percentage of income above a threshold — never on the loan balance. Plans 1, 2, 4 and 5 take 9% of income above their threshold; the Postgraduate Loan takes 6%. Earn below the threshold and you repay nothing, whatever you owe. It behaves more like a graduate tax than a normal loan.
What are the repayment thresholds for 2026/27?
For 2026/27: Plan 1 £26,900, Plan 2 £29,385, Plan 4 (Scotland) £33,795, Plan 5 £25,000, and Postgraduate Loan £21,000. Only income above these figures is subject to repayment, and each plan you hold is assessed against its own threshold independently.
How are repayments collected?
If you are employed, repayments come out automatically through PAYE once your pay passes the weekly or monthly equivalent of the threshold — so a big bonus month can trigger a deduction even if your annual income is modest. If you are self-employed, they are collected through Self Assessment.
What happens if I have more than one loan plan?
Each plan is calculated separately against its own threshold. An undergraduate plan (9%) and a Postgraduate Loan (6%) stack, so a higher earner with both can pay 15% of income across the overlapping band. The calculator above lets you select every plan that applies.
How does interest work on student loans?
It varies by plan. Plan 1 and Plan 4 interest is capped at the lower of RPI or the Bank of England base rate plus 1%. Plan 2 runs from RPI up to RPI plus 3% on a sliding scale by income. Plan 5 is RPI only. Because repayments are income-based, interest often matters less than expected — many borrowers never repay the full balance before write-off.
When is a student loan written off?
Any remaining balance is cancelled after a set period: Plan 1 after 25 years, Plans 2 and 4 after 30 years, the Postgraduate Loan after 30 years, and Plan 5 after 40 years (the longest, introduced in the 2023 reform). It is also written off on death or permanent disability.
Should I overpay my student loan?
Usually not. Because repayments are income-contingent and the balance is written off after the plan term, many borrowers — especially on Plan 5's 40-year term — never repay it in full. Voluntary overpayments only help high earners who would clear the loan anyway; for most people the money is better used elsewhere.
Sources
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