Student Loan Repayment (UK)
Updated November 2026 · Free · No sign-up
Calculate UK student loan repayments — 9% of income above your plan’s threshold (6% for Postgraduate Loans), by Plan 1, 2, 4, 5 or PGL, including the double-deduction months when plans combine.
Quick answer: You repay 9% of income ABOVE your plan threshold (PG loans: 6%). Approximate 2025/26 annual thresholds — verify current at gov.uk: Plan 1 ~£26,065, Plan 2 ~£28,470, Plan 4 ~£32,745, Plan 5 ~£25,000, PGL ~£21,000. £35,000 on Plan 2 → 9% × £6,530 ≈ £49/month.
How the Plans Work
| Plan | Who | Rate | Write-off |
|---|---|---|---|
| Plan 1 | Pre-2012 England/Wales, NI | 9% | 25 years / age 65 (cohort rules) |
| Plan 2 | 2012-2023 England/Wales | 9% | 30 years |
| Plan 4 | Scottish students | 9% | 30 years |
| Plan 5 | England 2023+ | 9% | 40 years |
| PGL | Master’s/doctoral loans | 6% (stacks on top) | 30 years |
Deductions run through PAYE on the PAY PERIOD’s income — a bonus month triggers repayment even if annual income sits below threshold (reclaimable from SLC after year end). Thresholds adjust most Aprils — the defaults here are approximate 2025/26 figures; verify at gov.uk.
Worked Examples
Example 1. £35,000, Plan 2: (35,000 − 28,470) × 9% = £587/yr ≈ £49/month.
Example 2 — Plan 2 + PGL. Same salary: add 6% × (35,000 − 21,000) = £840 → combined £119/month — the double-deduction surprise on master’s graduates’ payslips.
Example 3 — Plan 5’s lower threshold. £30,000: Plan 2 pays £11/month; Plan 5 pays £37/month — the 2023 reform’s quiet tightening, plus the 40-year write-off.
Strategy Notes
Most Plan 2/5 borrowers never repay in full — overpaying rarely beats saving unless you’re a high earner close to clearing; the write-off date is the real variable. Check your plan on the SLC portal; wrong-plan deductions (common after moving between nations) refund on correction. Salary sacrifice (EV, pension) reduces repayment income too — a hidden extra return.
Frequently Asked Questions
How much do I repay on each plan?
9% of income above your plan’s threshold (Plan 1/2/4/5), plus 6% above the PG threshold if you hold a Postgraduate Loan — both via PAYE.
Which plan am I on?
Broadly: pre-2012 England/Wales = Plan 1; 2012-2023 = Plan 2; Scotland = Plan 4; England 2023+ = Plan 5 — confirm on your SLC account; thresholds differ meaningfully.
Why did a bonus trigger a repayment?
PAYE applies the threshold per pay period — a spike month repays even under the annual threshold; reclaim from SLC after April if your year totals below it.
Should I overpay my student loan?
Usually only if you’ll clear it well before write-off — most Plan 2/5 borrowers won’t; compare against pension/ISA returns first. Not financial advice — model your own numbers.
Do loans affect mortgages?
Repayments reduce affordability calculations but the balance isn’t a credit-file debt — lenders look at the monthly deduction.
✓ Formula verified • Last updated: November 3, 2026