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    Student Loan Repayment Calculator UK 2026/27

    Income and Student Loan Details

    Enter your salary and loan details to see your take-home pay

    Student Loan Repayment Thresholds 2026/27

    Plan 1

    • Threshold: £26,900
    • Rate: 9%
    • Pre-2012 students

    Plan 2

    • Threshold: £29,385
    • Rate: 9%
    • 2012–2023 students

    Plan 4 (Scotland)

    • Threshold: £33,795
    • Rate: 9%
    • SAAS-funded students

    Plan 5

    • Threshold: £25,000
    • Rate: 9%
    • Post-Aug 2023 starters (England)

    Postgraduate

    • Threshold: £21,000
    • Rate: 6%
    • Masters/PhD loans

    Understanding Student Loan Repayments

    Automatic PAYE Deductions

    Student loan repayments are deducted automatically from your salary through PAYE, just like income tax and National Insurance. Your employer receives notification from HMRC about your loan plan and calculates the correct deduction. Repayments go directly to Student Loans Company (SLC), not HMRC. Our gross pay vs net pay guide explains how this affects take-home pay.

    Multiple Loans

    If you have both undergraduate (Plan 1/2/4/5) and postgraduate loans, you repay both simultaneously. This means up to 15% of income above threshold (9% + 6%). For Plan 2 at £35,000, you'd pay £505.35/year (£42.11/month) for undergraduate plus £840/year (£70/month) for postgraduate = £1,345.35 total.

    Loan Write-Off Periods

    Plan 1 loans written off after 25 years or at age 65. Plan 2 and postgraduate loans written off after 30 years. The write-off period starts from the April after you left your course (or when you were due to start repaying). After this period, any outstanding balance is cancelled, regardless of how much you still owe.

    Common Student Loan Issues

    Wrong Plan on Payslip

    • Check payslip shows correct plan (1, 2, or PG)
    • Contact HMRC to update if wrong
    • Claim refund for overpayments
    • Don't rely on employer to fix - contact HMRC directly

    Paying When Below Threshold

    • Shouldn't pay if below threshold (£25,000–£33,795)
    • Common with emergency tax codes
    • Contact SLC to claim refund
    • Update employment details with HMRC

    Complete Guide to Student Loan Repayment Calculations

    Understanding exactly how your student loan repayments are calculated helps you plan your finances and avoid surprises. Our student loan payslip deductions guide explains how this appears in PAYE. This guide walks through the calculation for each plan type with real salary examples.

    Example 1: Plan 2 Graduate Earning £35,000

    Most recent graduates are on Plan 2. Here's how repayments work at a typical graduate salary:

    StepCalculationAmount
    Annual gross salaryYour pre-tax salary£35,000
    Plan 2 threshold (2026/27)Income below this = no repayment£29,385
    Income above threshold£35,000 - £29,385£5,615
    Annual repayment (9%)£5,615 × 9%£505.35
    Monthly repayment£505.35 ÷ 12£42.11

    At this salary, you'd repay £505 per year. If interest added to your balance is higher than your repayments, your balance can still grow even while you are paying through PAYE.

    Example 2: Plan 1 Borrower Earning £45,000

    Plan 1 has a lower threshold but also lower interest rates. Here's a mid-career example:

    ComponentHow It WorksMonthlyAnnual
    Gross salaryYour annual income£3,750£45,000
    Plan 1 thresholdLower than Plan 2£2,242£26,900
    Amount over threshold£45,000 - £26,900£1,508£18,100
    Repayment (9%)9% of excess£135.75£1,629.00

    Plan 1 borrowers at this salary repay £1,629 per year - more than Plan 2 at the same salary (£1,405) due to the lower threshold. Plan 1 interest is currently lower than Plan 2's maximum rate, so total lifetime cost depends on balance, income path and write-off date.

    Example 3: Combined Undergraduate + Postgraduate Loans at £50,000

    If you have both undergraduate and postgraduate loans, you repay both simultaneously:

    Loan TypeThresholdRateOver ThresholdAnnual Repayment
    Plan 2 (Undergraduate)£29,3859%£20,615£1,855.35
    Postgraduate Loan£21,0006%£29,000£1,740.00
    Total Annual Repayment—15%—£3,595.35
    Monthly total£3,595.35 ÷ 12£299.61

    With dual loans, you pay 15% of income above the respective thresholds. At £50,000, that's about £300/month - a significant deduction alongside tax and NI. This affects mortgage affordability calculations.

    Complete Student Loan Plan Comparison 2026/27

    FeaturePlan 1Plan 2Plan 4Plan 5Postgraduate
    WhoPre-2012 (Eng/Wales)2012-2023 (Eng)ScotlandFrom Aug 2023Master's/PhD
    Threshold£26,900£29,385£33,795£25,000£21,000
    Repayment Rate9%9%9%9%6%
    Interest Rate3.2%RPI + up to 3%3.2%3.2%6.2%
    Write-off Period25 years30 years30 years40 years30 years
    Max Tuition Debt~£12,000~£37,000~£11,000~£37,000~£12,000
    Typical Total Balance£15,000-25,000£45,000-60,000£20,000-30,000£45,000-60,000£10,000-15,000

    Should You Pay Off Your Student Loan Early?

    This is one of the most common financial questions graduates face. The answer depends on your loan type, balance, and expected lifetime earnings. Here's how to decide:

    DON'T Pay Off Early If...

    • • Plan 2 with balance over £40,000: Most won't repay in full before write-off, so extra payments are wasted
    • • You expect to earn under £50,000 average: You'll likely have balance written off
    • • You need emergency fund first: Student loan pauses if you lose income; savings don't
    • • You have higher-interest debt: Credit cards (20%+) or loans (10%+) should be cleared first
    • • You could invest instead: Long-term investment returns may exceed the interest cost, depending on your plan and risk tolerance

    DO Consider Paying Off If...

    • • Plan 1 with small balance: Lower interest + shorter write-off means you'll likely repay anyway
    • • You'll definitely repay in full: High earners who'll pay £60k+ might save on interest
    • • You're close to paying off: Last £5,000-10,000 might be worth clearing
    • • Psychological benefit: Some people value debt-free status over mathematical optimization
    • • Moving abroad permanently: Fixed repayment terms abroad may make clearing beneficial

    Quick Decision Guide

    Use this rough guide based on expected lifetime earnings:

    Your PlanExpected Avg SalaryWill You Repay In Full?Pay Off Early?
    Plan 2Under £35,000NoNo
    Plan 2£35,000-£50,000UnlikelyNo
    Plan 2£50,000-£70,000MaybeCalculate
    Plan 2Over £70,000LikelyConsider
    Plan 1Under £30,000UnlikelyNo
    Plan 1Over £30,000LikelyMaybe

    7 Tips for Managing Your Student Loan

    1. Check Your Plan Type

    Verify your payslip shows the correct plan. Wrong plan = wrong deductions. Log into your SLC account to confirm, and contact HMRC if there's a mismatch. This is especially common when changing jobs.

    2. Use Salary Sacrifice Wisely

    Salary sacrifice for pension reduces your gross salary, which also reduces student loan repayments. A £5,000 sacrifice saves £450/year in loan payments (9%) on top of tax/NI savings. Double benefit.

    3. Update SLC When Moving Abroad

    You have 3 months to inform SLC of an overseas move. Failure to do so can result in penalties or your full balance becoming due. Overseas repayment terms are different and may be more favorable in some countries.

    4. Budget for Self-Employment

    If self-employed, student loan is paid through Self Assessment, not monthly. Set aside 9% of income over threshold throughout the year so you're not caught out by a large January/July bill.

    5. Know Your Write-Off Date

    Calculate your write-off date: it's 25-40 years from the April after you left your course (not graduation). Mark it in your calendar. Voluntary repayments in the final years before write-off are usually wasted.

    6. Factor Into Mortgage Applications

    Lenders use your net income after student loan deductions. Use our calculator to know your true take-home pay. Consider overpaying to clear before applying if it significantly increases borrowing capacity.

    7. Stop Payments When Cleared

    When your loan is nearly cleared, stop employer deductions to avoid overpaying. Contact HMRC for a "stop notice" 3 months before you expect to finish. SLC refunds overpayments, but it takes 3-4 months.

    5 Common Student Loan Mistakes to Avoid

    1. Panicking About a Growing Balance

    For Plan 2 borrowers especially, your balance will often grow in early years because interest (£3,000-4,000/year) exceeds repayments. This is normal and expected. What matters is monthly payments, not the balance - it gets written off eventually anyway.

    2. Making Voluntary Repayments Without Calculating

    Many people voluntarily overpay their student loan thinking it saves money. For most Plan 2 borrowers, this is throwing money away because you'd never repay in full anyway. Only overpay if you've calculated you'll definitely clear the balance before write-off.

    3. Forgetting About Multiple Loans

    If you have undergraduate + postgraduate loans, both are deducted simultaneously (15% combined). Many people budget based on 9% and are surprised by their actual take-home pay. Select your undergraduate plan and tick the postgraduate loan box to get accurate figures.

    4. Not Updating Details After Graduation

    SLC needs your current employer and address. If they can't contact you or don't know where you work, you may be incorrectly flagged as avoiding repayment. Keep your SLC online account updated, especially when changing jobs.

    5. Ignoring Refund Entitlement

    If you've been deducted when earning below threshold, or been on the wrong plan, you're entitled to a refund. Check your payslips against the thresholds. Many people leave hundreds or thousands unclaimed each year. Contact SLC with your payslips as evidence.

    Frequently Asked Questions

    What are the student loan repayment thresholds for 2026/27?+
    Plan 1: £26,900 (9% above threshold), Plan 2: £29,385 (9% above threshold), Plan 4 (Scotland): £33,795 (9% above threshold), Plan 5 (post-Aug 2023 starters): £25,000 (9% above threshold), Postgraduate loan: £21,000 (6% above threshold). If you earn below these amounts, you don't make any repayments. Thresholds apply to gross income before tax.
    How much will I repay on my student loan each month?+
    You repay 9% of income above the threshold (6% for postgraduate loans). For Plan 2, if you earn £35,000, you repay 9% of £5,615 (£35,000 - £29,385) = £42.11 per month. If you have multiple loans (e.g., undergraduate + postgraduate), you repay both simultaneously - up to 15% total.
    Which student loan plan am I on?+
    It depends when and where you studied: Plan 1 (England/Wales before Sept 2012, Scotland), Plan 2 (England/Wales from Sept 2012), Plan 4 (Scotland from Sept 1998), Postgraduate (Master's/PhD loans). Check your loan statement, payslips (shows plan type), or Student Loans Company account online.
    When does my student loan get written off?+
    Plan 1: 25 years after first April you were due to repay (or age 65 if earlier). Plan 2: 30 years after April you were due to repay. Plan 4: 30 years after April you were due to repay. Postgraduate: 30 years. If you're 50+ when you borrowed (Plan 1), it's written off at 65.
    Can I pay off my student loan early?+
    Yes, you can make voluntary repayments anytime to reduce interest. Current published rates include 3.2% for Plan 1, Plan 4 and Plan 5, with postgraduate loans at 6.2%; Plan 2 varies by income and is subject to caps. However, many borrowers should be cautious about paying extra because loans can be written off, repayments are income-contingent, and other savings or debts may be a higher priority.
    Why is student loan deducted from my payslip?+
    Your employer deducts student loan repayments automatically through PAYE (like tax and NI) based on your earnings and loan plan. HMRC tells employers which plan you're on. Repayments go directly to Student Loans Company. Check your payslip shows the correct plan - if wrong, contact HMRC to update.
    Do I repay student loan if I'm self-employed?+
    Yes. Self-employed individuals repay through Self Assessment tax return. You report your income, and HMRC calculates repayments using the same thresholds (9% above threshold). Payments are due with your tax bill on 31 January and 31 July. Many self-employed people forget this and face unexpected bills.
    What happens if I move abroad with my student loan?+
    You must inform Student Loans Company within 3 months of leaving the UK. You'll repay based on local income equivalents (not UK thresholds) directly to SLC, not through PAYE. Rates vary by country. Failure to notify or make payments can result in your full loan balance becoming due immediately plus penalties.
    What is the current student loan interest rate?+
    Interest rates vary by plan and can change during the year. GOV.UK currently shows 3.2% for Plan 1, Plan 4 and Plan 5, and 6.2% for postgraduate loans. Plan 2 is based on RPI and income, with the highest rates subject to caps. Interest accrues even if your income is below the repayment threshold.
    Does pension contribution reduce my student loan repayment?+
    It depends on your pension type. Salary sacrifice pensions reduce your gross salary, meaning lower student loan repayments. Relief-at-source pensions don't affect your student loan calculation because repayments are based on gross pay. For Plan 2, a £5,000 salary sacrifice would save approximately £450/year in student loan repayments (9% of £5,000).
    How do I check my student loan balance?+
    Log in to your Student Loans Company (SLC) account at gov.uk/student-finance-register-login. You can see your current balance, interest charged, and repayment history. SLC also sends annual statements each April. Note: your balance often increases in early years due to interest exceeding repayments - this is normal for most Plan 2 borrowers.
    What happens if I overpay my student loan?+
    If you overpay through PAYE (employer deducted too much), SLC will automatically refund the excess once your final balance is confirmed - usually within 3-4 months. You can also claim a refund directly from SLC if you've made a voluntary overpayment and paid off your loan. Keep records of all payments to support any refund claims.
    Can I pause student loan repayments?+
    Repayments automatically pause if your income drops below the threshold (earnings-based). You cannot voluntarily pause while earning above threshold. However, if you take career breaks, go part-time, or become unemployed, repayments stop automatically. Self-employed people may have larger gaps if income varies. Maternity/paternity pay often falls below threshold.
    Does student loan affect my credit score or mortgage?+
    Student loans don't appear on your credit report and don't directly affect your credit score. However, mortgage lenders do consider student loan repayments when calculating affordability. They reduce your net income, potentially lowering how much you can borrow. Some lenders are stricter than others - shop around or use a mortgage broker familiar with student loans.
    What is Plan 5 student loan?+
    Plan 5 applies to new students starting courses from August 2023 onwards (England). The repayment threshold is lower at £25,000, but the repayment term extends to 40 years. Interest is linked to RPI only (no income-based additions). If you're a recent graduate, check your loan documentation or SLC account to confirm your plan type.
    Can my employer pay off my student loan as a benefit?+
    Yes, some employers offer student loan repayment as a benefit - payments go directly to SLC. This is treated as taxable income (you'll pay income tax and NI on the value), but it can still be beneficial. Increasingly common in competitive industries like finance and tech. Check if your employer offers this benefit and calculate the true value after tax.

    Related Tax Calculators

    Student loan deductions are payroll deductions, so they are best checked alongside salary, NI and irregular pay patterns. use the income tax calculator for full monthly take-home pay, use the National Insurance calculator to compare NI with loan deductions and use the part-year employment calculator if you started or left work mid-year.

    Income Tax
    Calculate PAYE take-home pay
    National Insurance
    Employee & employer NI contributions
    Self-Employed Tax
    Tax & NI for sole traders