UK Student Loan Repayment Calculator Guide 2025/26: All 5 Plans Explained

UK student loan repayments for 2025/26 vary dramatically depending on which plan you're on. Plan 1 (pre-2012 England/Wales, all Northern Ireland) starts repaying at £26,065, Plan 2 (2012-2023 England/Wales) at £28,470, Plan 4 (Scotland) at £32,745, and Plan 5 (2023+ England) at £25,000. Postgraduate loans start at just £21,000.

On a £35,000 salary, you'll repay: Plan 1 £804/year (£67/month), Plan 2 £588/year (£49/month), Plan 5 £900/year (£75/month). If you have both undergraduate Plan 2 and postgraduate loans, you could pay up to 15% of income above thresholds - that's £1,428/year (£119/month) on £35,000.

This comprehensive guide covers all five student loan plans with 2025/26 thresholds, real repayment calculations, interest rates (RPI 3.2%), and strategies to understand when loans write off and whether overpaying makes sense.

Student Loan Plans Overview 2025/26

The UK has five different student loan plans with different repayment thresholds, interest rates, and write-off periods:

Plan	Who Has It	Threshold 2025/26	Rate	Interest 2025/26	Write-Off
Plan 1	Pre-2012 England/Wales, All NI	£26,065	9%	3.2% (RPI or BR+1%)	25 years
Plan 2	2012-2023 England/Wales	£28,470	9%	3.2-6.2% (income-based)	30 years
Plan 4	All Scottish students	£32,745	9%	3.2% (RPI or BR+1%)	30 years
Plan 5	2023+ England starters	£25,000	9%	3.2% (RPI only)	40 years
Postgraduate	Masters/PhD England/Wales	£21,000	6%	6.2% (RPI+3%)	30 years

RPI (Retail Price Index) for 2025/26: 3.2% Bank of England base rate: 4.00% (as of December 2025)

Key point: You can have multiple plans simultaneously (e.g., Plan 2 undergraduate + Postgraduate), and repayments stack up to a maximum of 15% of income.

Calculate Your Student Loan Repayments →

Plan 1: Pre-2012 England/Wales + All Northern Ireland

Who Has Plan 1

• Started university before September 2012 in England or Wales
• All Northern Ireland students (any start date)

Plan 1 Rates 2025/26

Repayment threshold: £26,065/year (£2,172/month, £501/week) Repayment rate: 9% on income above threshold Interest rate: 3.2% (RPI: 3.2% or base rate + 1% = 5.0%, whichever is lower) Write-off: 25 years after first April following graduation

Plan 1 Repayment Examples

Salary: £25,000

• Above threshold: £25,000 - £26,065 = -£1,065
• Repayment: £0 (below threshold)

Salary: £30,000

• Above threshold: £30,000 - £26,065 = £3,935
• Annual repayment: £3,935 × 9% = £354.15
• Monthly: £29.51

Salary: £35,000

• Above threshold: £35,000 - £26,065 = £8,935
• Annual repayment: £8,935 × 9% = £804.15
• Monthly: £67.01

Salary: £45,000

• Above threshold: £45,000 - £26,065 = £18,935
• Annual repayment: £18,935 × 9% = £1,704.15
• Monthly: £142.01

Salary: £60,000

• Above threshold: £60,000 - £26,065 = £33,935
• Annual repayment: £33,935 × 9% = £3,054.15
• Monthly: £254.51

Plan 1 Interest Calculation

Interest formula: Lower of RPI or Bank of England base rate + 1%

2025/26 comparison:

• RPI: 3.2%
• Base rate + 1%: 4.00% + 1% = 5.0%
• Applied rate: 3.2% (RPI is lower)

Example: £20,000 outstanding loan

• Annual interest: £20,000 × 3.2% = £640
• Monthly interest: £53.33

If you're earning £30,000:

• Annual repayment: £354.15
• Annual interest: £640
• Balance increases by £285.85 (interest exceeds repayments!)
• This is common on Plan 1 - most never fully repay, rely on 25-year write-off

Plan 2: 2012-2023 England/Wales Students

Who Has Plan 2

• Started university between September 2012 and July 2023 in England or Wales
• Most common plan currently

Plan 2 Rates 2025/26

Repayment threshold: £28,470/year (£2,372.50/month, £547.50/week) Repayment rate: 9% on income above threshold Interest rate: 3.2-6.2% (income-based tiered system) Write-off: 30 years after first April following graduation

Plan 2 Interest Rates (Tiered System)

Plan 2 has income-based interest:

Income	Interest Rate 2025/26
Below £28,470	3.2% (RPI only)
£28,470 - £49,130	3.2% + sliding scale to 6.2%
£49,130+	6.2% (RPI + 3%)

Example sliding scale calculation at £35,000:

• Distance above threshold: £35,000 - £28,470 = £6,530
• Range to maximum: £49,130 - £28,470 = £20,660
• Percentage through range: £6,530 ÷ £20,660 = 31.6%
• Interest premium: 3% × 31.6% = 0.95%
• Total interest: 3.2% + 0.95% = 4.15%

Plan 2 Repayment Examples

Salary: £25,000

• Above threshold: £25,000 - £28,470 = -£3,470
• Repayment: £0 (below threshold)
• Interest: 3.2% on outstanding balance

Salary: £30,000

• Above threshold: £30,000 - £28,470 = £1,530
• Annual repayment: £1,530 × 9% = £137.70
• Monthly: £11.48
• Interest rate: ~3.4% (just above threshold)

Salary: £35,000

• Above threshold: £35,000 - £28,470 = £6,530
• Annual repayment: £6,530 × 9% = £587.70
• Monthly: £48.98
• Interest rate: ~4.15% (mid-tier)

Salary: £45,000

• Above threshold: £45,000 - £28,470 = £16,530
• Annual repayment: £16,530 × 9% = £1,487.70
• Monthly: £123.98
• Interest rate: ~5.3% (high-tier)

Salary: £60,000

• Above threshold: £60,000 - £28,470 = £31,530
• Annual repayment: £31,530 × 9% = £2,837.70
• Monthly: £236.48
• Interest rate: 6.2% (maximum)

Plan 2 Interest Impact

Example: £50,000 outstanding loan, £45,000 salary

Annual repayment: £1,487.70 Interest rate: ~5.3% Annual interest: £50,000 × 5.3% = £2,650

Result: Balance increases by £1,162.30 despite £1,487.70 repayments!

To break even (repayments = interest):

• Need to repay: £2,650/year
• £2,650 ÷ 9% = £29,444 above threshold
• Required salary: £28,470 + £29,444 = £57,914

Most Plan 2 borrowers never fully repay - they rely on 30-year write-off. Only high earners (£60k+) consistently reduce balances.

Calculate Plan 2 Repayments and Interest →

Plan 4: Scottish Students

Who Has Plan 4

• All Scottish students, any start date
• Applies regardless of where you work in UK after graduating

Plan 4 Rates 2025/26

Repayment threshold: £32,745/year (£2,728.75/month, £629.71/week) Repayment rate: 9% on income above threshold Interest rate: 3.2% (RPI or base rate + 1%, whichever is lower) Write-off: 30 years after first April following graduation

Plan 4 Repayment Examples

Salary: £30,000

• Above threshold: £30,000 - £32,745 = -£2,745
• Repayment: £0 (below threshold)

Salary: £35,000

• Above threshold: £35,000 - £32,745 = £2,255
• Annual repayment: £2,255 × 9% = £202.95
• Monthly: £16.91

Salary: £45,000

• Above threshold: £45,000 - £32,745 = £12,255
• Annual repayment: £12,255 × 9% = £1,102.95
• Monthly: £91.91

Salary: £60,000

• Above threshold: £60,000 - £32,745 = £27,255
• Annual repayment: £27,255 × 9% = £2,452.95
• Monthly: £204.41

Advantage: Highest threshold (£32,745) means Scottish graduates start repaying later and pay less than other plans at same income level.

Plan 5: September 2023+ England Starters

Who Has Plan 5

• Started undergraduate course in England from September 2023 onwards
• New "fairer" system with lower interest but longer write-off

Plan 5 Rates 2025/26

Repayment threshold: £25,000/year (£2,083.33/month, £480.77/week) Repayment rate: 9% on income above threshold Interest rate: 3.2% (RPI only, no income-based increases) Write-off: 40 years after first April following graduation

Key difference: Lowest threshold (£25,000) but lowest interest (RPI only, no +3% premium) and longest write-off (40 years).

Plan 5 Repayment Examples

Salary: £25,000

• Above threshold: £25,000 - £25,000 = £0
• Repayment: £0 (exactly at threshold)

Salary: £30,000

• Above threshold: £30,000 - £25,000 = £5,000
• Annual repayment: £5,000 × 9% = £450
• Monthly: £37.50

Salary: £35,000

• Above threshold: £35,000 - £25,000 = £10,000
• Annual repayment: £10,000 × 9% = £900
• Monthly: £75.00

Salary: £45,000

• Above threshold: £45,000 - £25,000 = £20,000
• Annual repayment: £20,000 × 9% = £1,800
• Monthly: £150.00

Salary: £60,000

• Above threshold: £60,000 - £25,000 = £35,000
• Annual repayment: £35,000 × 9% = £3,150
• Monthly: £262.50

Plan 5 vs Plan 2 comparison at £35,000:

• Plan 5: £900/year (higher threshold means more repayment)
• Plan 2: £587.70/year
• Plan 5 pays £312.30/year more

However:

• Plan 5 interest: 3.2% flat (£1,600 on £50k balance)
• Plan 2 interest: ~4.15% at £35k income (£2,075 on £50k balance)
• Plan 5 interest is £475/year less

Long-term: Plan 5 likely better for high earners who fully repay (lower interest). Plan 2 better for lower earners who rely on write-off (higher threshold, shorter write-off period).

Postgraduate Loans: Masters/PhD

Who Has Postgraduate Loans

• Masters students in England/Wales (courses started 2016+)
• Doctoral students in England/Wales (courses started 2018+)

Postgraduate Loan Rates 2025/26

Repayment threshold: £21,000/year (£1,750/month, £403.85/week) Repayment rate: 6% on income above threshold Interest rate: 6.2% (RPI + 3%) Write-off: 30 years after first April following start of course

Important: Postgraduate loans repay simultaneously with undergraduate loans if you have both.

Postgraduate Repayment Examples

Salary: £25,000 (postgraduate loan only)

• Above threshold: £25,000 - £21,000 = £4,000
• Annual repayment: £4,000 × 6% = £240
• Monthly: £20.00

Salary: £35,000 (postgraduate loan only)

• Above threshold: £35,000 - £21,000 = £14,000
• Annual repayment: £14,000 × 6% = £840
• Monthly: £70.00

Salary: £45,000 (postgraduate loan only)

• Above threshold: £45,000 - £21,000 = £24,000
• Annual repayment: £24,000 × 6% = £1,440
• Monthly: £120.00

Combined Undergraduate + Postgraduate Repayments

Example: £35,000 salary with Plan 2 + Postgraduate

Plan 2 (undergraduate):

• Above threshold: £35,000 - £28,470 = £6,530
• Repayment: £6,530 × 9% = £587.70

Postgraduate:

• Above threshold: £35,000 - £21,000 = £14,000
• Repayment: £14,000 × 6% = £840

Total repayments: £1,427.70/year (£118.98/month)

Effective rate on income above £21,000:

• £14,000 above postgraduate threshold
• Paying: £1,427.70
• Effective rate: 10.2% of income above £21k

Maximum possible rate: 15% (9% undergraduate + 6% postgraduate on overlapping income above higher threshold)

Calculate Combined Loan Repayments →

Multiple Loans: Total Deductions on Salary

When you combine student loans with income tax and National Insurance, deductions add up significantly.

£35,000 Salary: Complete Breakdown (England, Plan 2)

Income tax:

• Taxable income: £35,000 - £12,570 = £22,430
• Tax: £22,430 × 20% = £4,486

National Insurance:

• NI-able income: £35,000 - £12,570 = £22,430
• NI: £22,430 × 8% = £1,794.40

Student loan (Plan 2 only):

• Above threshold: £35,000 - £28,470 = £6,530
• Repayment: £6,530 × 9% = £587.70

Total deductions: £6,868.10 Take-home: £28,131.90 (80.4% of gross) Monthly take-home: £2,344.33

£45,000 Salary: Complete Breakdown (England, Plan 2 + Postgraduate)

Income tax:

• Tax: £6,486 (see income tax guide)

National Insurance:

• NI: £2,594.32

Student loan Plan 2:

• Above threshold: £45,000 - £28,470 = £16,530
• Repayment: £16,530 × 9% = £1,487.70

Postgraduate loan:

• Above threshold: £45,000 - £21,000 = £24,000
• Repayment: £24,000 × 6% = £1,440

Total deductions: £12,008.02 Take-home: £32,991.98 (73.3% of gross) Monthly take-home: £2,749.33

Effective total deduction rate: 26.7%

£60,000 Salary: Complete Breakdown (England, Plan 2 + Postgraduate)

Income tax:

• Tax: £11,432 (£7,540 basic + £3,892 higher rate)

National Insurance:

• NI: £3,210.50

Student loan Plan 2:

• Repayment: £2,837.70

Postgraduate loan:

• Above threshold: £60,000 - £21,000 = £39,000
• Repayment: £39,000 × 6% = £2,340

Total deductions: £19,820.20 Take-home: £40,179.80 (67.0% of gross) Monthly take-home: £3,348.32

Marginal rate analysis:

• Income tax: 40%
• NI: 2%
• Student loan Plan 2: 9%
• Postgraduate: 6%
• Total marginal rate: 57% (every extra £1 earned = 57p deducted!)

Calculate Complete Deductions →

Should You Overpay Your Student Loan?

When NOT to Overpay (Most People)

For most borrowers, overpaying makes no financial sense:

1. You're unlikely to fully repay anyway

• Average Plan 2 debt: £45,000+
• Average starting salary: £25,000-£30,000
• Interest often exceeds repayments
• 30-40 year write-off means most balances written off

2. It's effectively a graduate tax, not a loan

• Repayments based on income, not balance owed
• Balance doesn't affect repayment amount
• Overpaying doesn't reduce monthly deductions

3. Better uses for money

• Emergency fund (3-6 months expenses)
• Pension (especially with employer match = instant 50-100% return)
• Mortgage deposit (property ladder)
• High-interest debt (credit cards at 15-25%)

Example: £1,000 extra payment on £50,000 Plan 2 loan

• Reduces balance to £49,000
• Saves interest: £1,000 × 5% = £50/year
• Return: 5% (your loan interest rate)

Compare to alternatives:

• Pension with employer match: 50-100% instant return
• Mortgage overpayment: 3.55-4.0% guaranteed return (December 2025)
• Emergency fund in 5% savings account: 5% return + liquidity
• Verdict: Pension and emergency fund beat loan overpayment

When Overpaying MIGHT Make Sense

Only overpay if ALL of these apply:

1. You're a very high earner (£70k+)

• Will definitely repay loan before write-off
• Interest genuinely costing you money long-term
• Overpaying saves compound interest

2. You're close to clearing the balance

• Example: £5,000 remaining on £60k salary
• Will clear in ~2 years anyway
• Clearing early stops 6% interest accumulating
• Psychological benefit of being debt-free

3. You're emigrating permanently

• Moving abroad triggers different repayment rules
• Some countries have no enforcement
• Clearing before emigration avoids complications

4. You have no better use for money

• Already have emergency fund
• Already maximising pension
• Already overpaying mortgage
• No high-interest debt

Realistic assessment: <5% of student loan borrowers should overpay. For the other 95%, it's financially better to invest money elsewhere and let the loan write off after 25-40 years.

Frequently Asked Questions

How much do I repay on a £35,000 salary?

Plan 1: £804/year (£67/month). Plan 2: £588/year (£49/month). Plan 4: £203/year (£16.91/month). Plan 5: £900/year (£75/month). Postgraduate: £840/year (£70/month). Repayment = 9% (or 6% postgrad) of income above your plan's threshold. Combined Plan 2 + Postgraduate = £1,428/year (£119/month).

What is the student loan threshold for 2025/26?

Plan 1: £26,065. Plan 2: £28,470. Plan 4 (Scotland): £32,745. Plan 5: £25,000. Postgraduate: £21,000. You only repay on income above these thresholds. If you earn below threshold, you repay nothing. Thresholds reviewed annually, usually increasing with inflation (RPI or equivalent measure).

How is student loan interest calculated?

Plan 1: RPI (3.2%) or base rate + 1% (5.0%), whichever is lower = 3.2%. Plan 2: RPI 3.2% (under £28,470) to RPI+3% = 6.2% (over £49,130), sliding scale between. Plan 4: Same as Plan 1 = 3.2%. Plan 5: RPI only = 3.2%. Postgraduate: RPI+3% = 6.2%. Interest applies to outstanding balance monthly.

When does my student loan get written off?

Plan 1: 25 years after first April following graduation. Plan 2: 30 years after first April following graduation. Plan 4: 30 years. Plan 5: 40 years. Postgraduate: 30 years after first April following start of course. Any remaining balance is written off regardless of amount. Example: Graduated 2015, write-off date: April 2040 (Plan 1) or April 2045 (Plan 2).

Can I have multiple student loans?

Yes. You can have undergraduate (Plan 1, 2, 4, or 5) and postgraduate loans simultaneously. You repay both at the same time through PAYE or self-assessment. Maximum combined deduction is 15% of income (9% undergraduate + 6% postgraduate). Example: £45k salary = £1,487.70 Plan 2 + £1,440 postgrad = £2,927.70/year total.

Should I overpay my student loan?

No, for most people (95%+). Student loans are effectively a graduate tax - balance doesn't affect repayments, and most people never fully repay (rely on write-off). Better to: build emergency fund, maximise pension (especially employer match), save for mortgage deposit. Only overpay if you're a very high earner (£70k+) who will definitely repay before write-off.

Do student loans affect my credit score?

No. Student loans don't appear on credit reports and don't affect credit score. However, lenders consider student loan repayments when assessing mortgage affordability (reduces disposable income). Example: £1,500/year loan repayment reduces mortgage borrowing capacity by ~£7,500-£10,000 depending on lender calculations.

What happens if I earn below the threshold?

You repay nothing. If you earn £25,000 on Plan 2 (threshold £28,470), you pay £0. Interest still applies to your balance, so it grows, but no repayments required. If you never earn above threshold, you never repay anything, and loan writes off after 25-40 years. Common for career breaks, part-time work, or lower-paid careers.

How do I repay if self-employed?

Self-employed individuals repay through self-assessment tax returns. Calculate income above threshold, apply 9% (or 6% postgrad), pay with tax bill. HMRC sends calculation. Can pay in two instalments (January and July payments on account). Same thresholds and rates apply - being self-employed doesn't change repayment amount.

What's the difference between Plan 2 and Plan 5?

Plan 2 (2012-2023 starters): £28,470 threshold, 3.2-6.2% income-based interest, 30-year write-off. Plan 5 (2023+ starters): £25,000 threshold (lower = repay more), 3.2% RPI-only interest (simpler), 40-year write-off (longer). Plan 5 generally better for high earners (lower interest), Plan 2 better for average earners (higher threshold, shorter write-off).

Related Resources

• UK Tax Calculator - Calculate student loan repayments with income tax and NI
• Income Tax Guide 2026 - Understand combined tax and loan deductions
• National Insurance Guide 2026 - Complete NI rates for total deduction calculations
• Take-Home Pay Calculator - See exact take-home after tax, NI, and student loans

---

Official Sources:

• Student Loans Company: Repayment Thresholds 2025/26
• GOV.UK: Student Loan Interest Rates (RPI 3.2% for 2025/26)
• SLC: Plan Types Explained
• GOV.UK: Postgraduate Loans

Last updated: 10 December 2025 Disclaimer: Student loan repayment information for 2025/26 tax year (6 April 2025 - 5 April 2026). Thresholds: Plan 1 £26,065, Plan 2 £28,470, Plan 4 £32,745, Plan 5 £25,000, Postgraduate £21,000. Interest rates: RPI 3.2% for 2025/26. Plan 2 uses sliding scale 3.2-6.2% based on income. Write-off periods: Plan 1 25 years, Plan 2/4/Postgrad 30 years, Plan 5 40 years. Repayment is 9% above threshold for undergraduate plans, 6% for postgraduate. Thresholds and interest rates reviewed annually. This guide is for information only - student loan terms are set by Student Loans Company and government. UK Calculator is not a student loan adviser.