Student Loan Repayment Calculator

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Plan 2 default: RPI+3% (~7.3% for 2025/26) | Plan 5: RPI+1.5% (~5.8%) | PGL: RPI+3%

Student Loan Plans Explained — UK 2026

Student loan repayments in the UK are income-contingent — you only repay when your salary exceeds the plan threshold, and any outstanding balance is written off after the plan limit. This makes them fundamentally different from commercial loans: the interest rate matters much less than your projected lifetime earnings.

Plan 5, introduced for students starting from September 2023, has a lower repayment threshold (£25,000 vs £27,295 for Plan 2) and a longer write-off period (40 years vs 30 years). This means Plan 5 borrowers will typically repay more over their lifetime than Plan 2 borrowers with the same debt.

Frequently Asked Questions

How much is student loan repayment in 2026?

Repayments depend on your plan and salary. Plan 2: 9% of earnings above £27,295. Plan 5: 9% above £25,000. PGL: 6% above £21,000. For example, on a £35,000 salary under Plan 2, you repay 9% of (£35,000 − £27,295) = £693/year (£57.75/month).

When is a student loan written off in the UK?

Plan 2 loans are written off 30 years after the April following graduation. Plan 5 loans are written off after 40 years. Plan 1 loans are written off at age 65 or 25 years after graduation (whichever is first). Postgraduate loans are written off after 30 years. Any remaining balance, including accrued interest, is cancelled entirely at the write-off date.

Should I overpay my student loan?

For most borrowers, overpaying is not recommended. The majority of Plan 2 and Plan 5 graduates will not fully repay their loan before write-off. If you overpay and your loan would have been written off anyway, you have paid money you did not need to. Overpaying is only worth it if you are a very high earner projected to repay the full balance before the write-off date.

What is the difference between Plan 2 and Plan 5?

Plan 2 (2012–August 2023 starters): threshold £27,295, written off after 30 years. Plan 5 (September 2023 onwards): threshold £25,000, written off after 40 years. Plan 5 borrowers generally repay more over their lifetime because of the lower threshold and longer write-off period. Both plans charge 9% on earnings above the threshold.

How is student loan interest calculated in the UK in 2026?

Student loan interest is linked to the Retail Price Index (RPI). Plan 2 charges RPI+3% while studying and for higher earners, tapering to RPI for earnings at the lower threshold. Plan 5 charges RPI+1.5%. Postgraduate Loan charges RPI+3%. The applicable RPI rate is confirmed each September using the March RPI figure. For 2025/26, the rate was approximately 7.3% for Plan 2 maximum-rate borrowers.