Student Loan Repayment Calculator
Our student loan repayment calculator shows your monthly student loan deduction for any salary level in 2026/27, covering all five UK repayment plans plus the Postgraduate Loan. Student loan repayments are not a traditional debt — they are income-contingent and collected through PAYE alongside income tax, and they are written off automatically after a set number of years regardless of the outstanding balance.
Student Loan Repayment Calculator
Calculate your monthly student loan repayments based on your salary for 2026/27.
Student Loan Plans and Thresholds 2026/27
The threshold above which you start repaying depends on which plan you are on. Plan 1 applies to English and Welsh students who started before September 2012, and Scottish and Northern Irish undergraduates — the threshold is £26,900 per year. Plan 2 applies to English and Welsh students starting from September 2012 — threshold £29,385 (frozen until April 2030). Plan 4 applies to Scottish graduates from August 2023 — threshold £33,795. Plan 5 is for new English and Welsh undergraduates from August 2023 — threshold £25,000. The Postgraduate Loan threshold is £21,000 and remains frozen.
You repay 9% of earnings above your plan threshold (6% for the Postgraduate Loan). If you earn below your threshold, you repay nothing that year — and your balance does not affect your credit score or ability to borrow for a mortgage.
Repayment Example
On a salary of £35,000 with a Plan 2 loan, your annual repayment is 9% of (£35,000 − £29,385) = 9% of £5,615 = £505.35 per year, or £42.11 per month. If you never earn above the threshold, you never repay anything, and the balance is written off after 30 years. Many Plan 2 graduates will never fully repay their loan — the write-off mechanism is a key feature of the system, not a loophole.
When Is Your Loan Written Off?
Write-off timelines vary by plan: Plan 1 loans are written off 25 years after the first April you were due to repay, or at age 65. Plan 2 loans are written off 30 years after the April following graduation. Plan 4 is written off after 30 years. Plan 5 is written off after 40 years. Postgraduate Loans are written off after 30 years. None of these write-offs carry a tax charge.
Frequently Asked Questions
Lenders consider student loan repayments as a monthly outgoing in their affordability assessment. However, because repayments are income-contingent and automatic, most lenders treat them more favourably than commercial debt. A student loan does not appear on your credit file and does not affect your credit score.
For most borrowers, especially on Plan 2 where many will never fully repay, voluntary overpayments are not financially advantageous. If you are likely to clear the balance within 30 years on current repayments, overpaying makes sense. If not, those funds would produce better returns in a pension or ISA. Our ISA Calculator can help model the opportunity cost.
Yes — you can hold an undergraduate loan and a Postgraduate Loan simultaneously. Repayments are calculated separately at 9% and 6% of income above the respective thresholds, and are collected by your employer through PAYE as two separate deductions.
No. If you move abroad, the Student Loans Company still expects repayments based on your overseas income. You must notify them and make overseas repayments directly. Failure to do so can result in additional charges.
Your new employer will be notified of your repayment plan through your P45 or starter checklist. Repayments restart automatically with the first payroll run. Use our Take-Home Pay Calculator to see the combined impact of income tax, NI, and student loan repayments on any salary.
Select your repayment plan carefully before entering your salary. Plan 1 covers pre-2012 English and Welsh students and all Northern Irish and Scottish graduates. Plan 2 covers English and Welsh graduates from September 2012 to July 2023. Plan 4 is for Scottish graduates from Scottish institutions. Plan 5 covers English students from August 2023. The repayment threshold, rate, and write-off period differ for each. Enter your gross salary — repayments are 9% of earnings above the threshold for Plans 1, 2, 4, and 5. Results show your monthly repayment, time to clear the balance, and total interest paid. For many moderate earners on Plan 2, the balance grows with interest faster than repayments reduce it, and the loan is written off after 30 years without being fully repaid — making it function more like a graduate tax.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.