How are student loan repayments calculated UK?

You repay 9% of income above the threshold (Plan 1/2/4) or 6% (Plan 5 - postgraduate). For example, Plan 2 threshold is £27,295 (2025/26). If you earn £35,000, you repay 9% of £7,705 = £693.45/year or £57.79/month. Repayments through payroll or self-assessment.

What are the student loan thresholds 2025/26 UK?

Plan 1: £24,990/year (£2,082/month). Plan 2: £27,295/year (£2,274/month). Plan 4 (Scotland): £31,395/year (£2,616/month). Plan 5 (post-2023): £25,000/year (£2,083/month). Postgraduate: £21,000/year (£1,750/month).

When is my student loan written off UK?

Plan 1 (pre-2012): 25 years after April after leaving course, or age 65. Plan 2 (2012-2023): 30 years after April after leaving. Plan 4 (Scotland): 30 years. Plan 5 (post-2023): 40 years. Any remaining balance written off, tax-free.

Do I have to repay student loan if I earn under threshold?

No — if your income is below your plan's threshold, you make no repayments. You only repay when earning above threshold, and only on the portion above. This makes repayments income-contingent, not like traditional debt.

Student Loan Repayment Calculator UK — How Much Will You Pay? | PocketWise

Student Loan Repayment Calculator UK — How Much Will You Pay?

Calculate your student loan repayments. Thresholds for Plans 1-5, how much is deducted from your salary, and when your loan gets written off.

By PocketWise · 23 March 2026 · 4 min read

Student loan repayments depend on your income and loan plan type. Here’s how to calculate exactly what you’ll pay.

Which Plan Are You On?

Identifying Your Plan

Plan	When/Where You Studied
Plan 1	England/Wales before Sept 2012
Plan 2	England/Wales Sept 2012 - July 2023
Plan 4	Scotland
Plan 5	England from Aug 2023
Postgraduate	Master’s/Doctoral loans

If Unsure

Check	How
Student Loans Company	Login to account
Payslip	Shows plan type
When you started	Generally indicates

Current Thresholds 2025/26

Annual Thresholds

Plan	Annual	Monthly	Weekly
Plan 1	£24,990	£2,082	£480
Plan 2	£27,295	£2,274	£524
Plan 4	£31,395	£2,616	£603
Plan 5	£25,000	£2,083	£480
Postgraduate	£21,000	£1,750	£403

Repayment Rates

Plan Type	Rate
Plan 1, 2, 4, 5	9% of income above threshold
Postgraduate	6% of income above threshold

Calculating Repayments

Formula

Calculation	Process
Take annual salary	Your gross pay
Subtract threshold	Your plan’s threshold
Multiply by 9%	(or 6% for PG)
= Annual repayment	Divided by 12 for monthly

Plan 2 Examples

Salary	Above Threshold	Annual Repay	Monthly
£25,000	£0	£0	£0
£30,000	£2,705	£243	£20
£35,000	£7,705	£693	£58
£40,000	£12,705	£1,143	£95
£50,000	£22,705	£2,043	£170
£60,000	£32,705	£2,943	£245

Plan 1 Examples

Salary	Above Threshold	Annual Repay	Monthly
£25,000	£10	£1	£0.08
£30,000	£5,010	£451	£38
£35,000	£10,010	£901	£75
£40,000	£15,010	£1,351	£113
£50,000	£25,010	£2,251	£188

Plan 4 Examples (Scotland)

Salary	Above Threshold	Annual Repay	Monthly
£30,000	£0	£0	£0
£35,000	£3,605	£324	£27
£40,000	£8,605	£774	£65
£50,000	£18,605	£1,674	£140

Postgraduate Loan Examples

Salary	Above £21,000	Annual (6%)	Monthly
£25,000	£4,000	£240	£20
£30,000	£9,000	£540	£45
£35,000	£14,000	£840	£70
£40,000	£19,000	£1,140	£95

Multiple Loans

If You Have Both

Loan Types	Repayment
Undergraduate + Postgraduate	Pay both simultaneously
Plan 2 + PG	9% + 6% = 15%
If earning above both	Both deducted

Combined Example

Salary £40,000	Calculation
Plan 2	9% × (£40k - £27,295) = £1,143
Postgraduate	6% × (£40k - £21,000) = £1,140
Total annual	£2,283
Monthly	£190

Interest Rates

Plan 2 Interest

Income	Rate (2025/26)
Below threshold	RPI
At threshold	RPI
Above £49,130	RPI + 3%
Between	Sliding scale

Other Plans

Plan	Interest
Plan 1	Lower of RPI or Bank of England + 1%
Plan 4	Lower of RPI or Bank of England + 1%
Plan 5	RPI only (no additional 3%)

Impact of Interest

Reality	Consideration
Most don’t repay in full	Interest often irrelevant
Balance grows	While earning below
Written off anyway	At end of term

Write-Off Dates

When Loans Are Cancelled

Plan	Written Off After
Plan 1	25 years (or age 65, if sooner)
Plan 2	30 years
Plan 4	30 years
Plan 5	40 years
Postgraduate	30 years

Calculating Your Write-Off

Plan 2 Example	Dates
Left course	July 2020
First April after	April 2021
30 years from	April 2051
Written off	April 2051

Is Write-Off Tax-Free?

What Happens	Treatment
Balance written off	No tax
Regardless of amount	Even if £50k+
Don’t count against	Your income

Should You Overpay?

When Overpaying Makes Sense

Scenario	Consider Overpaying
High earner	Will repay in full anyway
Small balance	Near end of repayment
Plan 1	Lower threshold, often repay

When Not to Overpay

Scenario	Don’t Overpay
Won’t clear before write-off	Money wasted
Low/medium earner	Unlikely to repay
Better uses	Savings, pension, debt

Calculation

Your Situation	Action
Total debt	£40,000
Annual repayment	£2,000
Years to clear	20
Write-off at	30 years
Will you repay?	Yes, before write-off

Versus
Total debt	£60,000
Annual repayment	£1,500
Years to clear	40
Write-off at	30 years
Will you repay?	No — will be written off

Self-Employment

If Self-Employed

Process	Details
Declare on Self Assessment	Income reported
HMRC calculates	Repayment due
Pay with tax	By 31 January

Class 2 NI

Note	Details
Repayments	Based on profits
Same thresholds	Apply
Same rates	9% / 6%

Repayment While Abroad

Working Overseas

Requirement	Details
Must still repay	If earning above threshold
Country thresholds	Different amounts
Report income	To SLC annually
Convert to GBP	At official rate

Overseas Thresholds

Country	Threshold Multiple
USA	69% of UK
Australia	120% of UK
Varies	By cost of living

Summary

Plan	Threshold	Rate	Write-Off
Plan 1	£24,990	9%	25 years
Plan 2	£27,295	9%	30 years
Plan 4	£31,395	9%	30 years
Plan 5	£25,000	9%	40 years
Postgrad	£21,000	6%	30 years

Key Calculation	Example
Salary	£35,000
Less threshold (Plan 2)	-£27,295
Income for repayment	£7,705
× 9%	£693/year
Monthly	£58