How Student Loan Repayments Work in the UK
Student loan repayments in the UK are income-contingent — you only repay when your income is above a certain threshold, and repayments are automatically deducted through the PAYE system (like income tax). If your income drops below the threshold, repayments stop automatically.
The amount you repay depends on which repayment plan you're on, which is determined by when and where you studied. Most graduates don't think about this, but including student loan repayments in your salary calculation is important for understanding your true take-home pay.
💷 Calculate with student loan: Our UK salary calculator includes all student loan plans — select your plan to see the exact amount deducted from your take-home pay.
Student Loan Plan Comparison 2026/26
| Plan | Who Is On It | Repayment Threshold | Rate | Write-Off |
|---|---|---|---|---|
| Plan 1 | England/Wales pre-2012, Scotland & NI students | £24,990/year | 9% | Age 65 (or 25 years for NI/Scotland) |
| Plan 2 | England/Wales students who started 2012–August 2023 | £27,295/year | 9% | 30 years after April you became eligible to repay |
| Plan 4 | Scottish students (post-1998 loans) | £31,395/year | 9% | Age 65 (or 30 years after graduating) |
| Plan 5 | England/Wales students who started August 2023 onwards | £25,000/year | 9% | 40 years after first eligible to repay |
| Postgraduate Loan | Postgraduate Master's or Doctoral loans | £21,000/year | 6% | 30 years after becoming eligible to repay |
How Much Will I Repay?
You repay 9% of your income above the threshold. Here are some examples:
Plan 2 (most common) – £27,295 threshold
| Annual Salary | Above Threshold | Annual Repayment | Monthly Repayment |
|---|---|---|---|
| £25,000 | Below threshold | £0 | £0 |
| £30,000 | £2,705 | £243.45 | £20.29 |
| £35,000 | £7,705 | £693.45 | £57.79 |
| £50,000 | £22,705 | £2,043.45 | £170.29 |
| £70,000 | £42,705 | £3,843.45 | £320.29 |
When Do I Start Repaying?
- Plan 1: The April after you leave your course (if earning above threshold)
- Plan 2: The April after you leave your course (if earning above threshold)
- Plan 4: The April after you leave your course or April after turning 21 (whichever is later)
- Plan 5: The April after you leave your course (if earning above threshold)
When Is My Student Loan Written Off?
The write-off rules vary significantly by plan:
- Plan 1: Written off when you turn 65, or 25 years after the April you first became eligible (NI/Scotland)
- Plan 2: Written off 30 years after the April you first became eligible to repay. For most 2012 starters, this will be around 2049.
- Plan 4: Written off when you turn 65 or 30 years from the April after graduation (whichever comes first)
- Plan 5: Written off 40 years after the April you first became eligible — meaning for 2023 starters, write-off won't occur until around 2066
⚠️ Important for Plan 5 graduates: The 40-year write-off period means most Plan 5 graduates will repay their loans in full before write-off. This significantly increases the true cost of going to university for post-2023 English & Welsh students.
Does Having a Student Loan Affect My Credit Rating?
No. Student loans in the UK do not appear on your credit file and are not considered by lenders when assessing mortgage or credit applications. However, lenders will see your take-home pay after student loan deductions when assessing affordability for mortgages.
Can I Pay Off My Student Loan Early?
Yes, you can make voluntary overpayments. However, this may not make financial sense for everyone — particularly for Plan 2 and Plan 5 borrowers who may have their loans written off before they're fully repaid. Consider getting independent financial advice before making overpayments.
Calculate Your Take-Home Including Student Loan
Select your student loan plan in our free UK salary calculator.
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