Figures this calculator uses
- Plan 1
- £26,900 (9%)
- Plan 2
- £29,385 (9%)
- Plan 4 (Scotland)
- £33,795 (9%)
- Plan 5
- £25,000 (9%)
- Postgraduate Loan
- £21,000 (6%)
How repayments are worked out
Yearly repayment = (salary − threshold) × 9%, or × 6% for a Postgraduate Loan. If you earn less than the threshold, you pay nothing.
Payroll works it out each pay day using a twelfth of the threshold for monthly pay and rounds down to the pound. Interest is added to your balance separately and doesn’t change what you repay each month.
Worked example
Tom earns £35,000 and has a Plan 2 loan.
- He earns £5,615 over the £29,385 threshold.
- 9% of that is £505.35 a year.
- His payslip shows £42 a month, because payroll rounds each month down to the pound.
If Tom also had a Postgraduate Loan, he’d pay 6% of £14,000 (£35,000 − £21,000) on top, which is £840 a year or £70 a month.
Questions people ask
What are the student loan repayment thresholds for 2026/27?
From 6 April 2026: Plan 1 is £26,900 a year, Plan 2 is £29,385, Plan 4 is £33,795, Plan 5 is £25,000 and the Postgraduate Loan is £21,000. You repay 9% of income over the threshold, or 6% for a Postgraduate Loan.
Which student loan plan am I on?
Plan 1 if you started in England or Wales before September 2012, or you’re from Northern Ireland. Plan 2 if you started in England or Wales between September 2012 and July 2023. Plan 4 if you’re from Scotland. Plan 5 if you started in England from August 2023. Your payslip and your online student loan account both show the plan.
Do I pay back student loans on my whole salary?
No. You only repay on the part of your income above the threshold. On a Plan 2 loan and a £35,000 salary, you repay 9% of £5,615, which is about £505 a year.
What if I have a Postgraduate Loan and an undergraduate loan?
You repay both at the same time: 6% over £21,000 for the Postgraduate Loan, plus 9% over your undergraduate plan’s threshold. This calculator adds them together.
When is my student loan written off?
Plan 1 loans are usually written off 25 years after the April you were first due to repay, or at 65 for older loans. Plan 2 and Plan 4 loans are written off after 30 years. Plan 5 loans are written off after 40 years. Postgraduate Loans are written off after 30 years. Any balance left is cancelled, and you don’t owe it.
Are student loan repayments taken from my pay automatically?
Yes, if you’re employed. Your employer takes them through PAYE based on each pay period, so you can pay in a month with overtime or a bonus even if your yearly pay is below the threshold. Self-employed people repay through Self Assessment.