Used to estimate years to repay (ignores interest for simplicity).
Annual Salary
£35,000.00
Total Annual Repayment
£505.00
Monthly Repayment
£42.08
Annual
£505.00
Monthly
£42.08
Weekly
£9.71
Everything you need to know about student loan repayments in the UK
How do student loan repayments work?
You only repay when your income exceeds your plan's threshold. You pay 9% on everything above the threshold — so on Plan 2 with a £28,470 threshold and a £35,000 salary, you repay 9% of £6,530 = £587.70/year or ~£49/month. It's automatically deducted from your payslip.
What plan am I on?
Plan 1: Started before Sep 2012 (England/Wales) or anytime in Scotland/NI. Plan 2: Started Sep 2012 onwards (England/Wales). Plan 4: Scotland only (since Sep 1998). Plan 5: Started from Aug 2023 onwards. Postgraduate: Separate loan for masters/PhD.
When is the loan written off?
Plan 1: 25 years after first eligible repayment (or age 65 for older loans). Plan 2: 30 years after the April you were first due to repay. Plan 4: 30 years (or age 65). Plan 5: 40 years. Postgrad: 30 years. Most borrowers will never repay in full.
Can I have multiple loans?
Yes — student loan and postgraduate loan repayments are collected simultaneously but independently. Each has its own threshold and rate. Our calculator handles both.
HMRC-Aligned: This calculator uses official HMRC/SLC rates and thresholds for the 2025/26 tax year. Years-to-repay estimates don't account for interest — they show repayment speed at your current salary. For full projections, consult the Student Loans Company.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
How repayment plans work, what you pay, and when your loan gets written off
Which repayment plan are you on?
Your plan depends on when and where you studied. Plan 1 is for English and Welsh students who started before September 2012, and all Scottish and Northern Irish students. Plan 2 is for English and Welsh students who started from September 2012. Plan 5 is for students starting from August 2023. Postgraduate loans have their own plan. Check your plan on your Student Loans Company account.
How much do you repay each month?
You repay 9% of everything you earn above your plan's threshold. For Plan 2, the threshold is £27,295 per year in 2025/26. On a £32,000 salary, you repay 9% of £4,705 = £423 per year, or about £35 per month. For Plan 1, the threshold is £24,990, so on the same salary you would repay £630 per year. Postgraduate loans take an extra 6% above £21,000.
When does your student loan get written off?
Plan 1 loans are written off when you turn 65. Plan 2 loans are written off 30 years after April following your graduation. Plan 5 loans are written off 40 years after. If you started a Plan 2 course in 2015 and graduated in 2018, your loan disappears in April 2049. Any remaining balance is cancelled — you do not owe a penny more, no matter how much is left.
Does your student loan affect your credit score?
No. Student loan debt does not appear on your credit report and does not affect your credit score. However, mortgage lenders do consider your student loan repayments when deciding how much to lend you, because the monthly repayment reduces your disposable income. On a £40,000 salary with a Plan 2 loan, your £95-per-month repayment could reduce your borrowing power by around £15,000.
What happens if you earn below the threshold?
If you earn below the repayment threshold, you pay nothing. No interest is added to your repayments — though interest does still accrue on the loan balance. If your income drops (for example, you lose your job or go part-time), repayments stop automatically through PAYE. You do not need to contact the Student Loans Company.
How does interest work on student loans?
Plan 1 loans charge the lower of RPI or Bank of England base rate plus 1%. Plan 2 loans charge RPI plus up to 3%, depending on your income — the maximum rate applies once you earn above £49,130. Plan 5 loans charge RPI only. In practice, many graduates repay less than the interest added, which is why a large portion of loans are expected to be written off.
Should you repay your student loan early?
For most people, no. If your salary means you will not repay the full amount before it is written off, making extra payments is like throwing money away. Early repayment usually only makes sense if you are a high earner (roughly £50,000+ on Plan 2) and would repay the full loan plus interest before write-off. Use a student loan calculator to check your specific situation before overpaying.
What if you are self-employed?
Self-employed people repay through their annual Self Assessment tax return rather than PAYE. You calculate your repayment based on your taxable profit above the threshold, at the same 9% rate. HMRC collects it alongside your income tax and National Insurance. You may also need to make payments on account (advance payments) based on last year's repayment amount.
HMRC-Aligned: Based on 2025/26 HMRC rates and thresholds. For personal advice, speak to a qualified accountant or tax adviser.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms