Student Loan Calculator

How UK Student Loan Repayments Work

UK student loans are repaid through the tax system based on your income, not the amount you borrowed. If you earn above a certain threshold, you pay a percentage of your income above that amount until the loan is cleared — or until it is written off after a fixed number of years. This makes student loans very different from normal bank loans.

Plan Types: Which One Am I On?

Your plan depends on when and where you studied. Plan 1 covers students who started in England, Wales or NI before September 2012, or Scottish students. Plan 2 covers English and Welsh students who started from September 2012. Plan 4 is for Scottish students from 1998. Plan 5 applies to those starting from September 2023 in England. Postgraduate loans have separate rules for master's and doctoral study.

2025/26 Repayment Thresholds

You only repay when your income exceeds the threshold for your plan. In 2025/26, the thresholds are: Plan 1 £24,990, Plan 2 £27,295, Plan 4 £31,395, Plan 5 £25,000, Postgraduate £21,000. You pay 9% of income above the threshold (6% for Postgraduate). So a Plan 2 graduate earning £30,000 pays 9% of (£30,000 − £27,295) = about £243 per year, or around £20 per month.

Interest and Write-Off

Student loans accrue interest while you're studying and in repayment. Plan 1 typically uses the lower of RPI or 1.5%. Plan 2, 4 and 5 use RPI plus up to 3% depending on income — currently around 7.3%. Interest doesn't change your monthly repayment (that's based solely on income), but it affects whether you'll ever pay off the loan or have it written off. Plan 1 loans are written off after 25 years; Plan 2 and 4 after 30 years; Plan 5 after 40 years; Postgraduate after 30 years.

Many Plan 2 and 5 borrowers will never fully repay — the loan is written off before they clear it. The calculator above shows whether you're likely to pay yours off or have the remainder cancelled.

Frequently Asked Questions

When do I start repaying my student loan?

Repayment starts in the April after you finish (or leave) your course, but only if your income is above the threshold. If you're below, you pay nothing. There's no fixed monthly amount — it's purely based on what you earn.

Will my student loan be written off?

Yes. Every plan has a write-off period. Plan 1: 25 years. Plan 2 and 4: 30 years. Plan 5: 40 years. Postgraduate: 30 years. Any balance remaining at that point is cancelled. You don't have to repay it.

What are the student loan repayment thresholds for 2025/26?

Plan 1: £24,990. Plan 2: £27,295. Plan 4: £31,395. Plan 5: £25,000. Postgraduate: £21,000. You pay 9% of income above the threshold (6% for Postgraduate).

Does a higher salary mean I pay off my loan faster?

Yes. Your repayment is a percentage of income above the threshold, so earning more means higher monthly payments and a quicker payoff — if you're going to pay it off at all. Many borrowers never clear the loan before write-off, in which case earning more simply means paying more in total before the remainder is cancelled.