Student Loan Repayment UK 2026/27 — Thresholds, Plans, and Write-Off DatesStudent Loan Repayment Calculator UK 2026 — Plan 1, 2, 4, 5 Compared
Calculate your student loan repayments. Compare all plan types, thresholds, interest rates, and see when you'll pay off your loan.
Student loan repayments can be confusing with different plans and thresholds. Here’s how to calculate what you pay and understand your specific loan.
The student loan system in the UK doesn’t work like a conventional debt. There are no monthly bills, no credit impact, and no bailiffs if you don’t pay — repayments are deducted automatically through PAYE, exactly like tax. You only ever repay 9% of what you earn above the threshold for your plan, meaning a pay cut or period of low earnings automatically reduces repayments to zero.
The single most important thing to establish is which plan you’re on — this determines your threshold, interest rate, and write-off date. A Plan 4 graduate in Scotland starts repaying four years later than a Plan 1 graduate in England, even on the same salary. And a Plan 5 graduate who started university from 2023 faces a 40-year write-off compared to 30 years for Plan 2.
Student Loan Plans Compared
2026/27 Overview
| Plan | Who | Threshold | Rate | Write-off |
|---|
| Plan 1 | England/Wales (pre-2012), NI | £24,990 | 6.25%* | 25 years after first due |
| Plan 2 | England/Wales (2012-2023) | £27,295 | RPI + 3%** | 30 years after graduation |
| Plan 4 | Scotland | £31,395 | 6.25%* | 30 years after graduation |
| Plan 5 | England (from Aug 2023) | £25,000 | RPI only | 40 years after graduation |
| Postgrad Loan | Masters/PhD (2016+) | £21,000 | RPI + 3% | 30 years |
*Linked to Bank of England rate
**Varies with income
Repayment Calculator
Monthly repayment = (Annual Salary - Threshold) × 9% ÷ 12
Plan 1 Repayments (Threshold: £24,990)
| Salary | Above Threshold | Annual Repay | Monthly Repay |
|---|
| £25,000 | £10 | £0.90 | £0 |
| £30,000 | £5,010 | £451 | £38 |
| £35,000 | £10,010 | £901 | £75 |
| £40,000 | £15,010 | £1,351 | £113 |
| £50,000 | £25,010 | £2,251 | £188 |
| £60,000 | £35,010 | £3,151 | £263 |
| £80,000 | £55,010 | £4,951 | £413 |
Plan 2 Repayments (Threshold: £27,295)
| Salary | Above Threshold | Annual Repay | Monthly Repay |
|---|
| £28,000 | £705 | £63 | £5 |
| £30,000 | £2,705 | £243 | £20 |
| £35,000 | £7,705 | £693 | £58 |
| £40,000 | £12,705 | £1,143 | £95 |
| £50,000 | £22,705 | £2,043 | £170 |
| £60,000 | £32,705 | £2,943 | £245 |
| £80,000 | £52,705 | £4,743 | £395 |
Plan 4 Repayments (Threshold: £31,395)
| Salary | Above Threshold | Annual Repay | Monthly Repay |
|---|
| £32,000 | £605 | £54 | £5 |
| £35,000 | £3,605 | £324 | £27 |
| £40,000 | £8,605 | £774 | £65 |
| £50,000 | £18,605 | £1,674 | £140 |
| £60,000 | £28,605 | £2,574 | £215 |
Plan 5 Repayments (Threshold: £25,000)
| Salary | Above Threshold | Annual Repay | Monthly Repay |
|---|
| £26,000 | £1,000 | £90 | £8 |
| £30,000 | £5,000 | £450 | £38 |
| £35,000 | £10,000 | £900 | £75 |
| £40,000 | £15,000 | £1,350 | £113 |
| £50,000 | £25,000 | £2,250 | £188 |
Interest Rates Explained
Plan 1 & 4 Interest
| Based On | Current Rate |
|---|
| Lower of RPI or BoE rate + 1% | ~6.25% |
Plan 2 Interest (Complex!)
| Your Income | Interest Rate |
|---|
| Below £27,295 | RPI only (~4%) |
| £27,295-£49,130 | RPI + 0-3% (sliding) |
| Above £49,130 | RPI + 3% (~7%) |
While studying: Always RPI + 3%
Plan 5 Interest
Plan 5 interest is capped at RPI — lower than Plan 2.
Will I Ever Pay Off My Loan?
For most Plan 2 graduates, the honest answer is no — and that’s not a bad thing. The Institute for Fiscal Studies estimates that around 80% of Plan 2 borrowers will have some balance written off after 30 years. This means for most graduates, the student loan effectively works as a graduate income tax: you pay 9% above the threshold for your working life, then it disappears. Whether you borrowed £40,000 or £60,000 can be almost irrelevant — what matters is your earnings, not your balance.
This changes the calculus on early repayments entirely. If you’re unlikely to repay in full anyway, making overpayments is simply donating money to the Student Loans Company.
Reality Check by Plan
| Plan | Typical Graduate | Will They Pay Off? |
|---|
| Plan 1 | £20k debt | Often yes (lower debt) |
| Plan 2 | £50-60k debt | Most won’t fully |
| Plan 4 | £15-30k debt | Often yes (Scotland fees lower) |
| Plan 5 | £40-50k debt | Many won’t (40 year write-off) |
Who Actually Pays Off Plan 2?
| Career Type | Starting Salary | Lifetime Earnings | Pays Off? |
|---|
| High-earning professional | £50k+ | £3m+ | Likely yes |
| Average graduate | £30k | £1.5m | Probably not |
| Public sector | £25-35k | £1.2m | No |
Institute for Fiscal Studies estimates ~80% of Plan 2 borrowers never fully repay.
When Is Write-Off?
Write-Off Rules
| Plan | Written Off |
|---|
| Plan 1 (pre-2006) | Age 65 or 25 years after first repayment |
| Plan 1 (2006-2012) | 25 years after first repayment due |
| Plan 2 | 30 years after first repayment due |
| Plan 4 | 30 years after first repayment due |
| Plan 5 | 40 years after first repayment due |
| Postgrad Loan | 30 years after first repayment due |
What “Written Off” Means
| Effect | Detail |
|---|
| Balance disappears | No further payments required |
| No tax implication | Unlike some debts |
| Doesn’t affect credit | Student loans don’t appear on credit report |
Should I Repay Early?
General Rule: Don’t Repay Early
| Reason | Explanation |
|---|
| Loan may be written off | Why pay more than necessary? |
| Low effective interest | Only pay while earning above threshold |
| Better uses for money | Pension, ISA, mortgage |
| No credit impact | Student loans don’t affect credit score |
When Early Repayment Makes Sense
| Situation | Why Repay |
|---|
| Very high earner (£100k+) | Will pay off anyway, stop interest |
| Small balance remaining | Clean slate |
| Emigrating permanently | May have to repay anyway |
| Mortgage maximisation | Some lenders count SL as debt |
Early Repayment Calculator
Should you pay off a £30,000 Plan 2 loan?
| Scenario | Lifetime Repaid | Outcome |
|---|
| Average salary (£40k) | ~£35,000 | Overpaid by £5k |
| High salary (£80k) | ~£50,000+ | Should pay off early |
| Low salary (£30k) | ~£15,000 | Would have wasted £15k |
Multiple Loans
If You Have Multiple Plans
| Combination | How Repayments Work |
|---|
| Plan 1 + Plan 2 | 9% on each threshold (18% above both!) |
| Plan 2 + Postgrad | 9% Plan 2 + 6% Postgrad (15% total) |
| Any + Postgrad | Postgrad adds 6% above its threshold |
Example: Plan 2 + Postgrad Loan
| Salary: £50,000 | Plan 2 | Postgrad | Total |
|---|
| Threshold | £27,295 | £21,000 | |
| Above threshold | £22,705 | £29,000 | |
| Rate | 9% | 6% | |
| Annual repayment | £2,043 | £1,740 | £3,783 |
Postgrad loans add £1,740/year on a £50k salary.
Impact on Take-Home Pay
£40,000 Salary Example
| Plan | Gross | Tax | NI | SL | Take-Home |
|---|
| No loan | £40,000 | £5,486 | £2,794 | £0 | £31,720 |
| Plan 1 | £40,000 | £5,486 | £2,794 | £1,351 | £30,369 |
| Plan 2 | £40,000 | £5,486 | £2,794 | £1,143 | £30,577 |
| Plan 4 | £40,000 | £5,486 | £2,794 | £774 | £30,946 |
| Plan 5 | £40,000 | £5,486 | £2,794 | £1,350 | £30,370 |
Self-Employed Repayments
How It Works
| Feature | Detail |
|---|
| When calculated | Self Assessment tax return |
| Based on | Profit above threshold |
| When paid | With tax bill (January 31) |
| Payments on account | May apply |
Example: Self-Employed, Plan 2
| Profit | Above £27,295 | Repayment |
|---|
| £30,000 | £2,705 | £243 |
| £50,000 | £22,705 | £2,043 |
Student Loan and Mortgages
How Lenders View It
| Lender Approach | Impact |
|---|
| Count as committed expenditure | Reduces borrowing amount |
| Ignore it | No impact |
| Varies by lender | Check specific policy |
Reducing Impact
| Strategy | Effect |
|---|
| Choose lender that ignores SL | Maximum borrowing |
| Pay off loan (if makes sense) | Removes monthly payment |
| Show net salary | Some forms allow |
Key Takeaways
- Check your plan — different thresholds and rules
- Repay 9% above threshold — not of total salary
- Most don’t pay off Plan 2 — especially mid-earners
- Don’t rush to repay — money may be wasted
- Write-off is real — 25-40 years depending on plan
- Multiple loans stack — can be expensive
For related content, see our take-home pay calculator, graduate job salary guide, and how to build wealth.