Understanding your student loan repayments helps you budget effectively. This guide covers all UK student loan plan types, repayment thresholds, and how repayments are calculated.
Student Loan Plan Types
| Plan Type | Who It Applies To | Start Years |
|---|---|---|
| Plan 1 | England/Wales before Sept 2012, NI | 1998-2012 |
| Plan 2 | England/Wales after Sept 2012 | 2012-2023 |
| Plan 4 | Scottish students | 1998 onwards |
| Plan 5 | England from Sept 2023 | 2023 onwards |
| Postgraduate | Masters or PhD students | 2016 onwards |
Repayment Thresholds 2025/26
| Plan Type | Annual Threshold | Monthly | Rate |
|---|---|---|---|
| Plan 1 | £24,990 | £2,082 | 9% |
| Plan 2 | £27,295 | £2,274 | 9% |
| Plan 4 | £31,395 | £2,616 | 9% |
| Plan 5 | £25,000 | £2,083 | 9% |
| Postgraduate | £21,000 | £1,750 | 6% |
How Repayments Work: You only repay when earning above the threshold. Repayments are 9% of income above the threshold (6% for postgraduate). If your income drops, so do repayments.
Calculate Your Repayments
Example: Plan 2 Loan
Annual salary: £35,000
Threshold: £27,295
Income above threshold: £7,705
Annual repayment: £7,705 × 9% = £693.45
Monthly repayment: £57.79
Monthly Repayments by Salary
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 |
|---|---|---|---|---|
| £30,000 | £37.58 | £20.29 | £0 | £37.50 |
| £35,000 | £75.08 | £57.79 | £27.04 | £75.00 |
| £40,000 | £112.58 | £95.29 | £64.54 | £112.50 |
| £50,000 | £187.58 | £170.29 | £139.54 | £187.50 |
When Is Your Loan Written Off?
| Plan Type | Written Off After |
|---|---|
| Plan 1 | 25 years |
| Plan 2 | 30 years |
| Plan 4 | 30 years |
| Plan 5 | 40 years |
| Postgraduate | 30 years |
Plan 5 Advantage: New Plan 5 loans have interest capped at RPI only, meaning the loan never grows faster than inflation in real terms.
Reality Check: Most Plan 2 borrowers will never repay their full loan. The average balance is £40,000+, and at typical graduate salaries, the loan gets written off before full repayment.
Key Things to Know
- Not like other debt: Repayments stop if income drops, loan is written off
- No credit score impact: Not reported to credit agencies
- Taken automatically: Via PAYE if employed
- Check your plan: Log in to Student Loans Company