Student Loan Repayment Calculator UK 2025/26

Student loan repayment calculator UK 2025/26 — Plan 1, 2, 4, 5, Postgrad. 9% above thresholds, see monthly + total repay

Quick answer: Student loan repayment depends on your plan: Plan 1 9% above £24,990, Plan 2 9% above £28,470, Plan 4 (Scotland) 9% above £31,395, Plan 5 (post-Aug 2023) 9% above £25,000, Postgraduate 6% above £21,000.
Mustafa Bilgic
Reviewed by Mustafa Bilgic · UK Calculator Editor ·

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UK student loan repayments are deducted via PAYE at 9% (or 6% postgraduate) above plan-specific thresholds. The plan you're on depends when and where you started higher education. This calculator shows your monthly repayment and timeline to clear the loan based on income.

How student loan repayment calculator works in 2025/26

Student loan plans 2025/26:

PlanStartedThresholdRateWipe-out
Plan 1Pre-Sep 2012 (E&W) or Pre-Sep 1998 (NI/Scot)£24,9909%25 years OR age 65 (whichever first)
Plan 2Sep 2012 - July 2023 (E&W)£28,4709%30 years
Plan 4Scotland (any year)£31,3959%30 years
Plan 5Aug 2023+ (E&W)£25,0009%40 years
Postgrad (PGL)Master's/PhD (E&W)£21,0006%30 years

Plan 5 changes (Aug 2023+) — important:

  • Lower threshold £25,000 (was £27,295 for Plan 2)
  • Repayment period extended to 40 years (was 30)
  • Interest rate reduced to RPI only (no RPI+3% during study)
  • Result: more graduates repay full loan (vs Plan 2 where ~80% never repay in full)

If you have multiple loan plans:

Common scenario: undergrad on Plan 2 + Master's on PGL = both deductions apply simultaneously. PGL 6% above £21,000 + Plan 2 9% above £28,470. On £35k income: PGL £840/year + Plan 2 £587.70/year = £1,427.70 total annual student loan deduction.

Worked example: £30k earner, Plan 2 only

£30,000 - £28,470 = £1,530 above threshold. 9% × £1,530 = £137.70/year (£11.48/month). Tiny — most never repay full Plan 2 in 30 years on these earnings.

Gross: £30,000 → Take-home: £137.70/year (£11.47/month)

Worked example: £45k earner, Plan 5 (post-2023 grad)

£45,000 - £25,000 = £20,000 above threshold. 9% × £20,000 = £1,800/year (£150/month). Higher than Plan 2 (£1,478) due to lower threshold.

Gross: £45,000 → Take-home: £1,800.00/year (£150.00/month)

Worked example: £55k earner, Plan 2 + PGL

Plan 2: 9% × (55,000 - 28,470) = £2,388. PGL: 6% × (55,000 - 21,000) = £2,040. Total £4,428/year (£369/month) student loan deductions.

Gross: £55,000 → Take-home: £4,428.00/year (£369.00/month)

Frequently asked questions

How is student loan deducted?
Through PAYE — your employer deducts the loan repayment from your gross salary AFTER tax + NI. It appears on your payslip as "Student Loan" deduction. Self-employed pay via Self Assessment in January following the tax year.
What plan am I on?
Depends WHEN and WHERE you started higher education: Pre-Sep 2012 E&W = Plan 1. Sep 2012 - July 2023 E&W = Plan 2. Aug 2023+ E&W = Plan 5. Scotland (any year) = Plan 4. Master's/PhD = Postgraduate Loan in addition. Check your Student Loans Company account.
Should I overpay my student loan?
Probably NOT for Plan 2/5 — most graduates won't repay in full before write-off. Overpayment is a "tax" you didn't need to pay. Plan 1 (older, £24,990 threshold) is more likely to be repaid in full — overpay if you've cleared other higher-interest debt.
What's the interest rate?
Plan 1: Bank of England base rate + 1% (typically 5-6% 2025/26). Plan 2: RPI during study, RPI+0-3% post-study (income-based). Plan 4: Bank rate + 1% (similar to Plan 1). Plan 5: RPI only (lower than Plan 2 — government attempt to reduce inflation impact).
Does student loan affect my mortgage application?
Yes — lenders see loan repayment as a fixed monthly outgoing. Reduces affordability calculation. £150/month student loan = ~£20-30k less mortgage borrowing. Affordability checks use your post-student-loan net income.
What if I move abroad?
You still must repay if living overseas. Inform Student Loans Company within 3 months of leaving UK. They send "overseas repayment schedule" based on local cost-of-living tables. Failure to inform = 250% interest penalty.
Can I be exempt from repayments?
Below threshold = no repayment. Some scenarios: (1) Welsh graduate working in Wales gets a partial-amount written off (changes per year), (2) Some teacher loan forgiveness schemes for shortage subjects in England, (3) NHS bursary for healthcare students may have special terms.

Official UK Sources

Last reviewed: May 2026 against HMRC 2025/26 rates.

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