Results are estimates for educational purposes only. Your actual deduction depends on your exact plan and HMRC/SLC records. Check gov.uk for confirmation.
How UK student loan repayment works
UK student loans work unlike a typical loan — repayments are based entirely on how much you earn, not how much you owe. If your income is below your plan's threshold, you repay nothing at all, even if you have a large remaining balance. Repayments are deducted automatically through PAYE if you're employed, shown as a separate line on your payslip.
2026 repayment thresholds by plan
Plan
Annual threshold
Repayment rate
Plan 1
£24,990
9%
Plan 2
£27,295
9%
Plan 4 (Scotland)
£31,395
9%
Plan 5
£25,000
9%
Postgraduate Loan
£21,000
6%
Which plan am I on?
Plan 1 — most English and Welsh undergraduates who started their course before September 2012, plus most NI students
Plan 2 — English and Welsh undergraduates who started between September 2012 and July 2023
Plan 4 — Scottish undergraduates, regardless of when they started
Plan 5 — English students starting their course from August 2023 onward
Postgraduate Loan — separate loan for master's or doctoral study, can be repaid alongside an undergraduate plan simultaneously
Worked example: £32,000 salary, Plan 2
Income above the £27,295 threshold is £4,705. At 9%, the annual repayment is £423.45, or roughly £35 per month — deducted automatically from your payslip.
What happens if I have both an undergraduate and postgraduate loan?
You repay both simultaneously: 9% above your undergraduate threshold, plus 6% above the £21,000 postgraduate threshold. These calculate independently and both amounts come off your pay in the same pay period.
Does my balance ever get written off?
Yes. Remaining balances are written off after a set period — 25 years after becoming eligible to repay for Plan 1 (or when you turn 65 if that comes first for older loans), 30 years for Plan 2, and 30 years for Plan 4 and Plan 5. You won't repay more than this regardless of how much interest accrues.
Frequently asked questions
Plan 1 applies to most English and Welsh students who started before September 2012. Plan 2 applies to English and Welsh students who started between 2012 and 2023. Plan 5 applies to new English and Welsh students starting from August 2023 onward. Plan 4 applies to Scottish students.
You repay 9% of your income above your plan's threshold for undergraduate loans, or 6% above the threshold for Postgraduate Loans. If you have both, you repay both percentages simultaneously on the relevant excess.
No. UK student loan repayments are calculated purely based on your income, not your remaining balance. If your income drops below the threshold, repayments stop automatically — and any remaining balance is written off after a set number of years (typically 25-40 years depending on your plan).
Yes. If you're employed, your employer deducts student loan repayments automatically through PAYE, alongside Income Tax and National Insurance, and it appears as a separate line on your payslip.