UK student loans aren’t like other debts. Repayments depend on what you earn, not what you owe. They come out of your pay automatically, and whatever’s left is written off after a set number of years. Which rules apply depends on your plan, and that depends on where you lived and when you started your course.
Which plan am I on?
| Plan | Who it’s for |
|---|---|
| Plan 1 | English and Welsh students who started before September 2012; Northern Irish students |
| Plan 2 | English and Welsh undergraduates who started between September 2012 and July 2023 |
| Plan 4 | Scottish students funded by SAAS |
| Plan 5 | English undergraduates who started on or after 1 August 2023 |
| Postgraduate | Master’s and doctoral loans in England and Wales |
You can have more than one plan, for example Plan 2 plus a Postgraduate loan. Your plan type is shown in your online Student Loans Company account and on your payslip.
Repayment thresholds for 2026/27
| Plan | Annual threshold | Monthly threshold | Rate above threshold |
|---|---|---|---|
| Plan 1 | £26,900 | £2,242 | 9% |
| Plan 2 | £29,385 | £2,449 | 9% |
| Plan 4 | £33,795 | £2,816 | 9% |
| Plan 5 | £25,000 | £2,083 | 9% |
| Postgraduate | £21,000 | £1,750 | 6% |
Plan 5 repayments start for the first time in April 2026. The Plan 2 threshold will be frozen at £29,385 from April 2027 until April 2030.
How much comes out of your pay
Repayments are worked out each payday on your gross pay for that period, not on your annual salary. Payroll takes 9% of pay above the period threshold and rounds down to the nearest pound.
| Salary | Plan 1 | Plan 2 | Plan 5 |
|---|---|---|---|
| £30,000 | £276 | £48 | £444 |
| £40,000 | £1,176 | £948 | £1,344 |
| £50,000 | £2,076 | £1,848 | £2,244 |
Because it’s per payday, a month with overtime or a bonus can trigger a repayment even if your annual salary is below the threshold. You can claim a refund for that from the Student Loans Company.
More than one plan
If you have two undergraduate plans, for example Plan 1 and Plan 2, you repay 9% above the lower threshold, split between the plans. A Postgraduate loan is repaid at the same time, at 6% above £21,000. On £40,000 with Plan 2 and a Postgraduate loan you’d repay both. That’s an extra 15% marginal deduction on top of tax and NI.
Interest and write-off
| Plan | Written off after |
|---|---|
| Plan 1 | 25 years after the first repayment was due, or at 65 for older loans |
| Plan 2 | 30 years after the April you were first due to repay |
| Plan 4 | 30 years |
| Plan 5 | 40 years |
| Postgraduate | 30 years |
Interest rates are linked to RPI (and, for Plan 2, to your income while you study and afterwards). They’re set each September and can be capped. Many Plan 2 borrowers never repay in full before write-off, so for them the loan behaves more like a graduate tax than a debt.
Should you overpay?
Overpaying only makes sense if you’re likely to repay the whole loan before it’s written off, usually high earners or people with small balances. If you’re unlikely to clear it, every pound you overpay is a pound you’d never have had to pay. Plan 5’s 40-year term and lower threshold mean more Plan 5 graduates will repay in full than on Plan 2.
Self-employed?
If you’re self-employed, repayments are collected through Self Assessment on your total income above the threshold. Our self-employed tax calculator includes them.
See your own figure
Tick your plans in the take-home pay calculator. The result shows your annual and monthly repayment, rounded exactly as payroll does it, and its effect on your marginal rate.
Common questions
How much student loan will I repay on £35,000?
On Plan 2 £504 a year (9% above £29,385, worked out monthly and rounded down). On Plan 5 £888. On Plan 1 £720.
Do student loans affect my credit score or mortgage?
They don’t appear on your credit file, but lenders count the monthly repayment as a commitment. See how much you can borrow.
Can I get overpaid student loan repayments back?
Yes, if your annual income ended up below the threshold, or you repaid after the loan was cleared. Apply to the Student Loans Company.
Which plan should I tick in the calculator?
Every plan you repay. Tick a Postgraduate loan alongside an undergraduate plan if you have both. The take-home pay calculator handles combinations.
This guide is general information, not financial or tax advice.