How UK student loans work
In the UK, government student loans are repaid as an income-contingent graduate contribution rather than commercial debt. You only repay if your earnings exceed your plan's specific statutory threshold.
Repayments are deducted automatically from your salary via PAYE (or through Self Assessment for the self-employed). Any balance remaining after 25, 30, or 40 years is cancelled completely by the UK government with zero tax liability.
Worked example
On Plan 2 (for students who started between 2012 and 2023), the 2026–27 repayment threshold is £29,385. If you earn £35,000, your excess income is £5,615. At the statutory 9% rate, your repayment is £505.35 per year (approximately £42.11 per month).
If your income falls below £29,385, your repayments immediately stop. Making voluntary overpayments does not reduce your monthly deductions and is rarely financially advantageous unless you are on track to fully repay before the write-off date.
Inputs for Student loan amount calculator
Annual salary / Gross income
Your pre-tax annual income from employment or self-employment.
Repayment plan
Your assigned student finance plan (Plan 1, Plan 2, Plan 4, Plan 5, or Postgraduate).
Current loan balance
Your total outstanding balance owed to the Student Loans Company.
CALCULATOR QUESTIONS
Student loan amount calculator questions
When will my UK student loan be written off?
Plan 1 loans are written off at age 65 or after 25 years. Plan 2 and Postgraduate loans are written off after 30 years. Plan 5 loans are written off after 40 years.
Does my student loan affect my credit score?
No. UK student loans do not appear on credit reference agency files (Experian, Equifax, TransUnion) and have no direct impact on your credit score.