Student Loan Repayment Calculator
2026-27 tax year · All UK plans
Postgraduate repayments stack on top of undergraduate — both are deducted simultaneously
2026-27 student loan thresholds
| Plan | Who it applies to | Threshold | Rate | Write-off |
|---|---|---|---|---|
| Plan 1 | England/Wales before Sep 2012; NI any year | £26,900 | 9% | 25 yrs or age 65 |
| Plan 2 | England/Wales Sep 2012 – Jul 2023 | £29,385 | 9% | 30 years |
| Plan 4 | Scottish students | £33,795 | 9% | 30 years |
| Plan 5 | England/Wales from Aug 2023 | £25,000 | 9% | 40 years |
| Postgraduate | Masters/Doctoral borrowers | £21,000 | 6% | 30 years |
How student loan repayments work
Student loan repayments are income-contingent — you only repay a percentage of earnings above your plan's threshold. If your income falls below the threshold, repayments pause automatically. There is no penalty for earning below the threshold, and your loan does not affect your credit score.
For employees, repayments are deducted automatically via PAYE alongside income tax and National Insurance. You do not need to do anything — your employer receives a start notice from HMRC. For the self-employed, repayments are calculated and paid through Self Assessment.
Plan 2 vs Plan 5 — the key differences
Plan 2 borrowers started university between September 2012 and July 2023. Plan 5 applies to students who started from August 2023 onwards. The key differences are the repayment threshold (£29,385 for Plan 2 vs £25,000 for Plan 5), the write-off period (30 years vs 40 years), and interest rates. Plan 5 charges only RPI inflation at all income levels, while Plan 2 charges RPI plus up to 3% depending on salary.
The lower Plan 5 threshold means borrowers start repaying at a lower salary. The 40-year write-off period means fewer Plan 5 borrowers will see their loan cancelled — government estimates suggest most will repay in full, unlike Plan 2 where the majority never clear the balance.
Should you make voluntary overpayments?
For most Plan 2 borrowers, voluntary overpayments are a poor financial decision. Government projections estimate that only around 25% of Plan 2 borrowers will repay in full before write-off. If you are in the majority who will not repay in full, overpaying means paying more than you would have through mandatory repayments — you would have been better off saving or investing the money instead.
The calculation is different for Plan 1 borrowers (closer to write-off) and some higher-earning Plan 5 borrowers. If you are confident you will repay in full, clearing the loan faster can save interest — but it depends entirely on your projected salary trajectory and remaining years to write-off.
Frequently asked questions
How do I know which plan I'm on?
Your plan type appears on your payslip — look for a student loan deduction with a plan number. You can also log into your Student Loans Company online account to see your plan, current balance, and repayment history. If you're unsure, check when and where you started your course: England/Wales before September 2012 is Plan 1; September 2012 to July 2023 is Plan 2; August 2023 onwards is Plan 5; Scotland is Plan 4.
Do I repay both undergraduate and postgraduate loans at the same time?
Yes. If you have both, deductions are made simultaneously — 9% of income above your undergraduate threshold plus 6% above the £21,000 postgraduate threshold. Both deductions appear on your payslip. The combined deduction can be up to 15% of income above both thresholds, which is significant on a mid-range salary.
What happens if I go below the threshold?
Repayments pause automatically. If your salary drops below your plan threshold — due to a career break, part-time work, or job change — your employer stops making deductions and HMRC is notified. Repayments resume automatically when your income rises above the threshold again. You do not need to notify anyone.
When is Plan 5 written off?
Plan 5 loans are written off 40 years after the April following your graduation — the longest write-off period of any UK student loan plan. A student who graduated in 2026 and started repaying in April 2027 would see any remaining balance written off in April 2067. This is significantly longer than Plan 2's 30-year write-off.