Every undergraduate plan takes 9% of your pay above a threshold. The thresholds differ, from £25,000 on Plan 5 to £33,795 on Plan 4, so on £40,000 you repay anything from £47 to £113 a month depending on your plan.
What you owe barely affects what you pay each month. Repayments depend on your income, not your balance, and they stop when the loan is written off. That makes student loans behave more like a graduate tax than a normal debt, and it changes the maths on whether to pay extra.
The plans side by side
| Plan | Who has it (course start) | Threshold a year | A month | Rate | Written off after |
|---|---|---|---|---|---|
| Plan 1 | England or Wales before September 2012, and Northern Ireland | £26,900 | £2,241.67 | 9% | 25 years |
| Plan 2 | England from September 2012 to July 2023, and Wales from September 2012 | £29,385 | £2,448.75 | 9% | 30 years |
| Plan 4 (Scotland) | Scotland | £33,795 | £2,816.25 | 9% | See your statement |
| Plan 5 | England from 1 August 2023 | £25,000 | £2,083.33 | 9% | 40 years |
| Postgraduate loan | Master's and doctoral loans in England and Wales | £21,000 | £1,750.00 | 6% | See your statement |
Thresholds are for 2026/27. The Plan 2 threshold of £29,385 is then frozen from April 2027 to April 2030, so as pay rises, Plan 2 graduates will repay more each year.
What each plan takes from your pay
Repayments are worked out each pay period on your earnings for that period, so a monthly payslip compares your pay with one twelfth of the threshold. Here is what each plan takes every month at six salaries:
| Salary | Plan 1 | Plan 2 | Plan 4 (Scotland) | Plan 5 |
|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £0.00 | £0.00 |
| £30,000 | £23.25 | £4.61 | £0.00 | £37.50 |
| £35,000 | £60.75 | £42.11 | £9.04 | £75.00 |
| £40,000 | £98.25 | £79.61 | £46.54 | £112.50 |
| £50,000 | £173.25 | £154.61 | £121.54 | £187.50 |
| £60,000 | £248.25 | £229.61 | £196.54 | £262.50 |
Plan 5 has the lowest threshold, so it starts taking money soonest. On £40,000 a Plan 5 graduate pays £395 a year more than a Plan 2 graduate on the same salary.
Postgraduate loans and two loans at once
A postgraduate loan is repaid at 6% of income above £21,000, and it runs alongside any undergraduate plan. Both are taken at the same time, so the two rates stack. At £40,000, this is what each plan and the postgraduate loan cost a month:
With a Plan 2 loan and a postgraduate loan together, £40,000 takes home £2,518.69 a month, against £2,693.30 with no loans. That is £174.61 a month in loan repayments on top of tax and National Insurance.
Plan 2 plus a postgraduate loan on £40,000 takes £2,095 a year
Write-off: why most people never clear it
Whatever is left is cancelled once the plan's term ends: 25 years for Plan 1, 30 years for Plan 2 and 40 years for Plan 5. Nothing is repaid in any year you earn below the threshold, and years like that still count towards the term.
The longer Plan 5 term matters. Someone on Plan 2 might repay for 30 years and still have a balance written off; on Plan 5 the same person pays for another 10 years, from a threshold £4,385 lower, so far more of the balance gets repaid.
Student loan repayments count as an outgoing when you apply for a mortgage. See how much you can borrow for how lenders treat them.
Should you overpay?
Only if you are confident you will clear the balance before write-off. If you will not, every extra pound you pay simply reduces the amount that would have been cancelled, and you are left poorer. Graduates on high salaries with small balances are the likeliest to benefit.
One way to repay less without overpaying: salary sacrifice pension contributions come off your pay before the loan is worked out. The salary sacrifice guide shows the effect. To see your exact repayment, use the student loan repayment calculator, or add your plan to the take-home pay calculator to see it on a full payslip. Every figure here follows our methodology.
Student loan repayment calculatorMonthly repayments for Plan 1, 2, 4, 5 and postgraduate loans. Open itQuestions people ask
Which student loan plan am I on?
It depends on where you lived and when your course started. Your plan type is shown on your student loan account and on your payslip. If you are unsure, the Student Loans Company can tell you.
What is the Plan 2 threshold in 2026/27?
£29,385 a year, or £2,448.75 a month. It will then be frozen from April 2027 to April 2030.
Do I repay if I earn under the threshold?
No. You repay 9% of income above your plan's threshold only, so nothing is taken in any pay period where you earn less than it.
Is student loan repayment worked out on salary before pension?
It is worked out on pay for National Insurance, so salary sacrifice pension contributions reduce it but net pay and relief at source contributions do not.
