Question 1

How are student loan repayments calculated?

Accepted Answer

You repay a percentage of your income above a threshold, not a fixed monthly amount. For Plans 1, 2, 4 and 5 the rate is 9% of income above the plan threshold. For Postgraduate Loans it is 6%. Repayments are collected automatically through PAYE (payroll) if you are employed, or through Self Assessment if self-employed.

Question 2

What are the repayment thresholds for 2026/27?

Accepted Answer

Plan 1: £24,990/year. Plan 2: £27,295/year. Plan 4 (Scotland): £31,395/year. Plan 5: £25,000/year. Postgraduate Loan: £21,000/year. These thresholds are reviewed each April. For Plan 5 specifically, the threshold is frozen at £25,000 until 2027.

Question 3

When does my student loan get written off?

Accepted Answer

Plan 1: written off 25 years after the April you first became liable to repay (or at age 65 if the course started before 2006). Plan 2: 30 years after first repayment due date. Plan 4: 30 years. Plan 5: 40 years. Postgraduate Loan: 30 years. If you die or become permanently disabled, the loan is cancelled. The loan is also wiped in bankruptcy in certain circumstances, though this is unusual.

Question 4

Can I have two student loans at the same time?

Accepted Answer

Yes. If you have an undergraduate loan (Plan 1, 2, 4 or 5) and a Postgraduate Loan, repayments are collected separately. Undergraduate repayments are 9% above the undergraduate threshold; postgraduate repayments are 6% above £21,000. Both can be deducted from your salary simultaneously, which can significantly affect take-home pay.

Question 5

Is it worth repaying my student loan early?

Accepted Answer

For most borrowers, early repayment does not make financial sense. The interest rate on Plan 2 and Plan 5 loans is linked to RPI, and many people will never fully repay before the loan is written off, meaning they would pay more than necessary by overpaying. If you are on Plan 1 with a low balance you are likely to repay in full, in which case early repayment to save interest may be worthwhile. Always check your loan balance and projected write-off date before deciding.

Question 6

What plan am I on?

Accepted Answer

Plan 1: started an undergraduate or postgraduate course in the UK before September 2012, or you studied in Northern Ireland. Plan 2: started an undergraduate course in England between September 2012 and July 2023. Plan 4: studied in Scotland on or after 1 September 1998. Plan 5: started an undergraduate course in England from August 2023 onwards. Postgraduate: took out a Masters or Doctoral loan. Your payslip should show your plan type, or you can check via the Student Loans Company.

Student Loan Repayment Calculator

Your loan details

Repayment breakdown

Related calculators

Related guides

Frequently asked questions