Will You Actually Pay Off Your UK Student Loan or Not? 🇬🇧
Work out exactly how much you'll repay each month, how much interest you'll be charged, and whether your loan will be paid off or written off. Works for Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate Loans. Free, no sign-up.
Last updated: October 9, 2026
Balance vs. total paid
How your outstanding loan shrinks against what you've paid in.
Yearly interest vs. repayment
When interest outpaces repayment, your balance grows.
| Year | Start bal. | Salary | Interest | Paid | End bal. |
|---|
Same balance and salary applied across every UK plan.
How much will you repay? 2026/27 thresholds at a glance
| Loan plan | Who it's for | Annual threshold | Monthly threshold | Weekly threshold | Interest Rate | Interest (Sept 2026 – Aug 2027) | Written off after |
|---|---|---|---|---|---|---|---|
| Plan 1 | England & Wales students who started before Sept 2012; Northern Ireland students | £26,900 | £2,242 | £517 | 9% | 4.1% | Usually 25 years* |
| Plan 2 | England & Wales, started Sept 2012 – July 2023 | £29,385 | £2,449 | £565 | 9% | 4.1% to 6% (capped) | 30 years |
| Plan 4 | Scottish students | £33,795 | £2,816 | £649 | 9% | 4.1% | 30 years |
| Plan 5 | England, started on or after 1 Aug 2023 | £25,000 | £2,083 | £480 | 9% | 4.1% | 40 years |
| Postgraduate Loan | Master's and Doctoral loans (England & Wales) | £21,000 | £1,750 | £403 | 6% | 6% (capped; would be 7.1%) | 30 years |
* You'll repay either:
- 9% of your income over the threshold if you're on Plan 1, 2, 4 or 5
- 6% of your income over the threshold if you're on a Postgraduate Loan plan
**Some older Plan 1 loans are written off at age 65 instead. Check your SLC account. Thresholds run from 6 April 2026 to 5 April 2027. Please check: gov.uk/repaying-your-student-loan/what-you-pay
📋 2026/27 Thresholds & Interest
| Plan | Threshold | Rate | Interest (approx) | Write-off |
|---|---|---|---|---|
| Plan 1 | £26,900 | 9% | 4.1% (lower of RPI / base+1%) | 25 yrs |
| Plan 2 | £29,385 | 9% | 4.1–7.1% (capped 6%) | 30 yrs |
| Plan 4 | £33,795 | 9% | 4.1% | 30 yrs |
| Plan 5 | £25,000 | 9% | 4.1% (RPI only) | 40 yrs |
| Postgraduate | £21,000 | 6% | RPI+3% (capped 6%) | 30 yrs |
Sources: GOV.UK / Student Loans Company announcements for 2026/27. Interest rates apply from Sep 2026. Thresholds effective April 2026.
How is student loan repayment calculated? (UK, 2026/27)
The formula is the same for every plan:
(Your annual income − your plan's threshold) × 9% = your yearly repayment
(Use 6% for a Postgraduate Loan.) Divide by 12 for your monthly figure.
Your repayment is based on your gross pay before tax, including bonuses and overtime. It is not based on your loan balance. Whether you owe £20,000 or £70,000, the monthly repayment is the same at the same salary.
Let's do an example:
Imagine you have recently started your first graduate job after taking out an undergraduate loan for your degree. You earn £32,000 per year under Plan 2. How much do you have to repay?
Step 1: Identify your annual income
Easy, it's £32,000 per year.
Step 2: Subtract your plan's threshold
The threshold for Plan 2 is £29,385 per year, so £32,000 - £29,385 = £2,615
Step 3: Multiply the remaining amount by 9%
£2,615 × 9% = £235.35
Your annual repayment is £235.35, which works out at around £20 per month. Not bad, right? That's less than most gym memberships.
Worked examples (2026/27)
| Plan | Salary | Calculation | Yearly | Monthly |
|---|---|---|---|---|
| Plan 1 | £35,000 | (£35,000 − £26,900) × 9% | £729 | £60.75 |
| Plan 2 | £40,000 | (£40,000 − £29,385) × 9% | £955.35 | £79.61 |
| Plan 4 | £40,000 | (£40,000 − £33,795) × 9% | £558.45 | £46.54 |
| Plan 5 | £30,000 | (£30,000 − £25,000) × 9% | £450 | £37.50 |
| Postgraduate | £30,000 | (£30,000 − £21,000) × 6% | £540 | £45.00 |
| Plan 2 + Postgraduate | £45,000 | £1,405.35 + £1,440 | £2,845.35 | £237.11 |
* If you earn less than your threshold, you repay nothing. If you earn over the threshold in a single month (a bonus, say), you may repay for that month. You can claim back overpayments at the end of the tax year if your annual income was below the threshold.
How do I know what payment plan I am on for student loans?
- Plan 1: you started an undergraduate course in England or Wales before 1 September 2012, or you're a Northern Irish student.
- Plan 2: you started an undergraduate course in England or Wales between 1 September 2012 and 31 July 2023.
- Plan 4: you're a Scottish student.
- Plan 5: you started an undergraduate course in England on or after 1 August 2023.
- Postgraduate Loan: you took out a Master's or Doctoral loan. This is repaid alongside your undergraduate loan.
* Not sure? Log in to your Student Loans Company (SLC) online account, or check a payslip or P60 for the plan code. Please check: gov.uk/sign-in-to-manage-your-student-loan-balance
How do I know when I have to start repaying my student loans in the UK?
You start in the April after you leave your course and only once you earn above the threshold. Part-time students start in the April four years after the course began. Plan 5 repayments begin from April 2026, the first year this loan type is collected.
Repayments stop automatically if you earn under the threshold, stop working, clear the loan or reach write-off.
How does student loan interest work in 2026/27?
Interest is set by the Retail Price Index (RPI). The RPI figure for the 2026/27 academic year is 4.1%.
- Plan 1 and Plan 4: 4.1% (the lower of RPI or Bank of England base rate + 1%).
- Plan 2: a sliding scale from RPI (4.1%) up to RPI + 3% (7.1%) depending on income, capped at 6% from 1 Sept 2026 to 31 Aug 2027.
- Plan 5: RPI only, 4.1%.
- Postgraduate Loan: RPI + 3% (7.1%), also capped at 6% for 2026/27.
Important: interest does not change your monthly repayment. It changes the balance, which matters mainly for whether you'll clear the loan before write-off. Rates are reset each September, and the government can change them. Please check: gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement
Will my student loan be written off?
Most graduates won't repay in full. Whether you will depends on three things: your starting balance, your salary growth, and your plan's write-off period (25, 30 or 40 years). The calculator above projects your balance year by year so you can see the payoff or write-off date.
Rule of thumb: if the calculator shows write-off, extra repayments cost you money without shrinking your total bill. Low and mid earners usually fall into this group.
*Please check: gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled
Should I overpay my student loan?
For most of the UK graduates, often not, but it depends on your projected outcome:
- Likely to be written off: overpaying usually just means you give away money you'd never have needed to repay.
- Likely to clear it in full: overpaying can cut the interest you pay in total.
- Plan 5 and Plan 1 (lower interest): compare against savings rates, mortgage overpayments or pension contributions first.
- Plan 2 and postgraduate loans (higher interest): overpaying makes more sense only if the calculator shows you'll clear the loan.
Use the monthly overpayment box in the calculator to compare both scenarios. There is no penalty for paying early, and student loans don't appear on your credit file.
**This page is guidance, not financial advice. For personal decisions, speak to a regulated adviser.
What changed for student loans in 2026/27?
- Plan 5 repayments start from April 2026, with a £25,000 threshold.
- Thresholds rose for Plan 1 (£26,900), Plan 2 (£29,385) and Plan 4 (£33,795). The Postgraduate threshold is frozen at £21,000.
- A 6% interest cap applies to Plan 2 and Postgraduate loans until 31 August 2027.
- The Plan 2 threshold is due to be frozen for several years from April 2027, so more of your pay will be taken as wages rise.
*Because the rules change every April and September, we update this page and the calculator each time. Please check: gov.uk/government/publications/student-loans-a-guide-to-terms-and-conditions/student-loans-a-guide-to-terms-and-conditions-2026-to-2027