FAQs

You repay 9% of your gross income above your plan’s threshold (6% for a Postgraduate Loan). In 2026/27 the thresholds are £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) and £21,000 (Postgraduate). Enter your salary into the calculator above for your exact monthly figure.

It is 9% of income above the threshold for Plans 1, 2, 4 and 5, and 6% above £21,000 for Postgraduate Loans. The percentage applies only to the part of your pay above the threshold, not your whole salary.

It depends on your plan:

• Plan 1: about £279 a year (£23.25 a month)
• Plan 2: about £55 a year (£4.61 a month)
• Plan 5: £450 a year (£37.50 a month)
• Plan 4: £0, as £30,000 is below the £33,795 threshold
• Postgraduate Loan: £540 a year (£45 a month), if you have one

• Plan 1: £1,179 a year (£98.25 a month)
• Plan 2: £955.35 a year (£79.61 a month)
• Plan 4: £558.45 a year (£46.54 a month)
• Plan 5: £1,350 a year (£112.50 a month)

No. Your repayment depends only on your income and plan. Someone with £60,000 of debt and someone with £20,000 pay the same amount at the same salary.

They are calculated on your gross (pre-tax) income, including bonuses and overtime, and deducted through PAYE. They don’t reduce your taxable income or the tax and National Insurance you pay.

You start in April after you leave your course, and only if you earn above your plan’s threshold. Part-time students start in April four years after the course began. Plan 5 repayments began in April 2026.

Yes. Repayments stop automatically if your income falls below the threshold or you stop working. They restart if your income rises above it again.

Employers check your pay each pay period. If one month’s pay goes above the monthly threshold, you repay for that month even if your yearly income ends up below the threshold. You can ask for a refund at the end of the tax year if your annual income was below the yearly threshold.

Contact the Student Loans Company (SLC) through your online account. If you were charged while earning under the annual threshold, request a refund after the tax year ends. Don’t ask your employer, as they can’t refund it once HMRC has it.

You repay through your Self-Assessment tax return, not PAYE. HMRC calculates the amount from your total income for the year, and you usually pay it with your tax bill.

• Plan 1: England or Wales (started before 1 September 2012) or Northern Ireland.
• Plan 2: England or Wales, started between 1 September 2012 and 31 July 2023.
• Plan 4: Scotland.
• Plan 5: England, started on or after 1 August 2023.
• Postgraduate Loan: Master’s or Doctoral loan.

The quickest way to confirm is your SLC online account.

Yes. If you have an undergraduate loan and a Postgraduate Loan, you repay both. For example, on £45,000 with Plan 2 and a Postgraduate Loan, you’d repay £1,405.35 plus £1,440 a year, a total of £2,845.35 (£237.11 a month).

Plan 5 has a lower threshold (£25,000 vs £29,385), a longer write-off period (40 vs 30 years) and a lower interest rate (RPI only, 4.1%, vs up to RPI + 3%). Plan 5 borrowers typically pay more each month at the same salary but pay less interest.

From 1 September 2026 to 31 August 2027, RPI is 4.1%. Plans 1, 4 and 5 are charged 4.1%. Plan 2 ranges from 4.1% to 6%, as the maximum is capped at 6% (it would otherwise reach 7.1%). Postgraduate Loans are also capped at 6%.

No. Interest changes your balance, not what is deducted from your pay. It matters mainly for whether you’ll clear the loan before it’s written off.

If your repayments are less than the interest added each year, your balance will grow. This is common on Plan 2 and Postgraduate Loans, where interest can be as high as 6%.

• Plan 1: usually 25 years after you were first due to repay (some older loans at age 65)
• Plan 2, Plan 4 and Postgraduate: 30 years
• Plan 5: 40 years

Any remaining balance is cancelled, with no tax due.

It depends on your starting balance, your salary growth, and your plan. Most graduates on moderate earnings won’t repay in full. Use the calculator’s projection to see your estimated outcome.

Often not. If your loan is likely to be written off, overpaying costs you money you’d never have been asked to repay. Overpaying can make sense if the calculator shows you’ll clear the loan in full anyway. Compare it with alternatives such as savings, pension contributions or mortgage overpayments first. This is guidance, not financial advice.

Log in to your SLC online account and pay by debit card or bank transfer. There is no penalty for paying early.

No. Student loans don’t appear on your credit report. Mortgage lenders may still count your monthly repayment when checking affordability.

You still have to repay. You must tell the SLC, and your overseas repayment amount is set according to the country you live in.

Plan 5 repayments began (£25,000 threshold), the Plan 1, Plan 2 and Plan 4 thresholds rose, the Postgraduate threshold stayed at £21,000, and a 6% interest cap applies to Plan 2 and Postgraduate Loans until 31 August 2027.

It uses the official 2026/27 thresholds and rates and projects forward using your assumptions about salary growth and inflation. Future rules and rates can change, so treat results as estimates, not financial advice. Check gov.uk or your SLC account for your actual balance.