How student loan repayments work
Student loan repayments depend on your income, not on how much you owe. You repay 9% of your income above your plan's threshold, or 6% above the threshold for a Postgraduate Loan. If you earn less than the threshold, you repay nothing.
For 2026 to 2027 the yearly thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4, £25,000 for Plan 5 and £21,000 for a Postgraduate Loan. For 2025 to 2026 they were £26,065 for Plan 1, £28,470 for Plan 2, £32,745 for Plan 4 and £21,000 for a Postgraduate Loan. Plan 5 repayments start in the 2026 to 2027 tax year.
Any balance left is written off after a set time from the April you were first due to repay: 25 years for Plan 1, 30 years for Plan 2, Plan 4 and Postgraduate Loans, and 40 years for Plan 5. Plan 1 loans taken out before 1 September 2006, and some older Plan 4 loans, are written off when you're 65 instead.
Worked example
On a £35,000 salary with a Plan 2 loan in 2026 to 2027, you earn £5,615 above the £29,385 threshold. You repay 9% of that, which is £505.35 a year or £42.11 a month.
With a £45,000 balance at an example rate of 4%, those repayments are smaller than the interest added each year, so the balance keeps growing. If nothing changed, you'd repay £15,160.50 in total and the loan would be written off after 30 years with about £117,610 unpaid.
Why the projection is only a rough guide
The payoff projection keeps your salary, the repayment threshold and the interest rate the same every year. In reality, pay usually rises, thresholds change and interest rates are reset, so your actual total could be quite different.
Repayments are taken through payroll each pay period when you're employed, so your payslip may differ slightly from the monthly figure here. Your Student Loans Company online account shows your balance, plan and current interest rate.
Inputs for the student loan repayment calculator
Tax year
Choose 2025 to 2026 or 2026 to 2027 to use that year's repayment thresholds. Plan 5 can only be used with 2026 to 2027.
Repayment plan
Your repayment plan depends on where and when you started your course. It's shown in your Student Loans Company online account.
Gross salary (per year)
Your annual income before tax. Repayments are 9% of the amount above your plan's threshold, or 6% for a Postgraduate Loan.
Loan balance
How much you owe now. Enter 0 to see only this year's repayments without a payoff projection.
Interest rate on your loan (per year)
The rate shown is only an example. Rates differ by plan and can change, so enter your current rate from your Student Loans Company account.
CALCULATOR QUESTIONS
Student loan repayment calculator questions
How much will I repay on my student loan each month?
It's 9% of your income above your plan's threshold, divided over the year. On £35,000 with a Plan 2 loan in 2026 to 2027, that's £42.11 a month.
What if I earn less than the threshold?
You repay nothing. Interest is still added to your balance, and any amount left is written off at the end of the repayment period.
When is my student loan written off?
Plan 1 loans are written off 25 years after the April you were first due to repay, Plan 2, Plan 4 and Postgraduate Loans after 30 years, and Plan 5 after 40 years. Plan 1 loans from before 1 September 2006 and some older Plan 4 loans are written off at 65.
Does a bigger balance mean bigger repayments?
No. Your monthly repayment depends only on your income. A bigger balance just means it takes longer to clear, or more is written off.
Can I repay both an undergraduate and a Postgraduate Loan?
Yes. You repay both at the same time: 9% above your undergraduate plan's threshold and 6% above £21,000. Use the salary calculator to see both deductions in your take-home pay.