... Student Loan Repayment Calculator UK 2025/26 - How Much Will You Actually Pay Back?

Student Loan Repayment Calculator UK 2025/26

Find out your monthly repayments, estimated total repaid, interest charged, and when your loan will be written off — for all UK student loan plans.

✓ Plans 1, 2, 4 & 5 ✓ Postgraduate Loan ✓ Write-Off Timeline ✓ 2025/26 Thresholds
Monthly Repayment
£0
Annual repayment: £0
Repayment Threshold
£0
per year
Income Above Threshold
£0
per year
Write-Off Year
years remaining

Projected Repayment Over Time

Student Loan Repayment Thresholds 2025/26

You only repay your student loan when your income exceeds the repayment threshold for your plan. Below the threshold, no repayments are taken regardless of your loan balance. The thresholds are reviewed each April.

PlanWho It Applies To2025/26 ThresholdRepayment RateWrite-Off Period
Plan 1Started before Sept 2012 (England/Wales) or before Sept 2006 (NI)£24,990/yr9%25 years or age 65
Plan 2Started Sept 2012–July 2023 (England)£27,295/yr9%30 years after graduation
Plan 4Scotland£31,395/yr9%30 years or age 65
Plan 5Started Aug 2023 onwards (England)£25,000/yr9%40 years after graduation
PostgraduateMaster’s or Doctoral loans£21,000/yr6%30 years after graduation

How Student Loan Repayments Are Calculated

Your repayment is simply 9% of everything you earn above the threshold — nothing below it. The threshold acts as a floor, not a taper. If you earn £30,000 on Plan 2 (threshold £27,295), you repay 9% of the £2,705 difference — that’s £243.45 per year, or just over £20 per month. Repayments are deducted automatically through PAYE alongside income tax and National Insurance.

Student Loan Interest Rates

Interest accrues on your student loan balance throughout your studies and repayment period. The rate depends on your plan and, for Plan 2, your income level.

PlanInterest Rate
Plan 1Lower of RPI or Bank of England base rate + 1%
Plan 2 (while studying or income below threshold)RPI + 3%
Plan 2 (income £27,295–£49,130)RPI scaling up to RPI + 3%
Plan 2 (income above £49,130)RPI + 3%
Plan 4Lower of RPI or Bank of England base rate + 1%
Plan 5RPI only
Postgraduate LoanRPI + 3%

Will My Student Loan Be Written Off?

For the majority of Plan 2 borrowers — who typically graduate with £45,000–£60,000 of debt — the loan will be written off after 30 years with a significant balance remaining. Research by the Institute for Fiscal Studies has consistently found that only around 25% of Plan 2 borrowers are expected to repay their loans in full before write-off. The remaining 75% will have some or all of their loan cancelled at the 30-year mark.

Plan 5 borrowers face a longer 40-year write-off window, which means more total repayments before cancellation. The lower interest rate on Plan 5 partially offsets this.

Should You Overpay Your Student Loan?

Voluntary overpayments reduce your balance and future interest charges, but they only make financial sense if you are on track to repay the full amount before write-off. For most Plan 2 and Plan 5 borrowers with significant balances, overpaying means repaying money that would otherwise have been written off — making overpayments a poor use of funds for the majority.

Higher earners with smaller balances — especially Plan 1 borrowers — are more likely to benefit from voluntary overpayments, as their loan will be cleared before the write-off date in any case. If in doubt, use this calculator to model whether your current balance and salary trajectory puts you on track for full repayment.

Plan 2 vs Plan 5 — Key Differences

Students starting undergraduate courses in England from August 2023 are on Plan 5, which replaced Plan 2. The key differences are that Plan 5 has a lower repayment threshold (£25,000 vs £27,295), charges interest at RPI only rather than up to RPI plus 3%, and has a 40-year write-off period rather than 30 years. The net effect is that Plan 5 borrowers repay more in total, particularly those with lower to middle incomes who will repay for longer before write-off.

Frequently Asked Questions

Your monthly repayment depends on your plan and income. You repay 9% of everything you earn above the repayment threshold. For Plan 2 in 2025/26, the threshold is £27,295 per year. On a £35,000 salary you repay 9% of £7,705, which is £693 per year or £57.75 per month.
In 2025/26 the repayment thresholds are: Plan 1 — £24,990 per year; Plan 2 — £27,295 per year; Plan 4 (Scotland) — £31,395 per year; Plan 5 — £25,000 per year; Postgraduate Loan — £21,000 per year. You only repay when your income exceeds these thresholds.
Plan 1 loans are written off 25 years after the April you first became eligible to repay, or when you reach age 65. Plan 2 loans are written off 30 years after the April following your graduation. Plan 4 loans are written off 30 years after you first became liable to repay or at age 65. Plan 5 loans are written off 40 years after the April following your graduation.
No. UK student loans are not recorded on your credit file and do not affect your credit score. They are collected through the tax system via PAYE. Mortgage lenders may take your student loan repayment into account when assessing affordability, as it reduces your take-home pay.
For most Plan 2 and Plan 5 borrowers, voluntary overpayments are not financially beneficial because the loan will be written off before it is fully repaid. Only higher earners who are on track to repay the full balance before the write-off date benefit from overpaying. Always model your own situation before making voluntary repayments.
Plan 1 and Plan 4 charge interest at the lower of RPI or Bank of England base rate plus 1%. Plan 2 charges between RPI and RPI plus 3% depending on income. Plan 5 charges the RPI rate only. Postgraduate Loans charge RPI plus 3%.
Your student loan does not disappear if you move abroad. You are still required to make repayments based on your overseas income. The Student Loans Company will ask you to self-report your income annually and will apply an overseas repayment threshold equivalent to the UK threshold adjusted for the cost of living in your country of residence.
Plan 5 applies to students starting undergraduate courses from August 2023 onwards. Compared to Plan 2, Plan 5 has a lower repayment threshold (£25,000 vs £27,295), a longer write-off period (40 years vs 30 years), and a lower maximum interest rate (RPI only vs RPI plus 3%). Plan 5 borrowers generally repay more in total over their lifetimes.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top