Student loan repayment calculator 2026/27
See exactly how much student loan you repay each month based on your salary and loan plan. Repayments are taken automatically through PAYE alongside your tax and National Insurance.
Your take-home pay
£23,676/year
£1,973/month · £455/week
Tax band breakdown
Effective tax rate: 21.08% · Personal allowance: £12,570
Student loan repayment thresholds 2026/27
You only start repaying your student loan once your income exceeds the threshold for your specific plan. Repayments are 9% (or 6% for postgraduate loans) of everything earned above that threshold — you never repay based on what you owe, only on what you earn above the threshold.
| Plan | Who it applies to | Annual threshold | Rate |
|---|---|---|---|
| Plan 1 | Started before September 2012 (England/Wales); or Northern Ireland | £24,990 | 9% |
| Plan 2 | Started on or after September 2012 (England/Wales) before August 2023 | £27,295 | 9% |
| Plan 4 | Started in Scotland on or after September 1998 | £31,395 | 9% |
| Plan 5 | Started on or after August 2023 (England) | £25,000 | 9% |
| Postgraduate | Postgraduate Master's or Doctoral loans | £21,000 | 6% |
If you have both an undergraduate and a postgraduate loan, repayments on both are deducted simultaneously. A Plan 2 graduate with a postgraduate loan earning £30,000 would repay 9% of the amount above £27,295 plus 6% of the amount above £21,000 — both deductions appear on the same payslip.
When does my student loan get written off?
Unlike a mortgage or credit card, student loan debt is written off after a set number of years regardless of how much remains outstanding. The write-off periods are:
- Plan 1 — written off 25 years after the April you first became eligible to repay, or when you reach 65, whichever comes first
- Plan 2 — written off 30 years after the April you first became eligible to repay
- Plan 4 — written off 30 years after the April you first became eligible to repay, or when you reach 65
- Plan 5 — written off 40 years after the April you first became eligible to repay
- Postgraduate — written off 30 years after the April you first became eligible to repay
Research by the Institute for Fiscal Studies suggests the majority of Plan 2 and Plan 5 graduates will never fully repay their loans before the write-off date, meaning the write-off provision will apply for most borrowers.
How repayments appear on your payslip
Student loan deductions are collected by HMRC through the PAYE system in the same way as income tax and National Insurance. Your employer does not need to know the specific details of your loan — they simply apply the deduction indicated by your tax code or a student loan start notice (SL1) issued by HMRC.
Repayments are based on your annual income divided into pay periods. If you are paid monthly, the repayment threshold is divided by 12. This means if you earn above the threshold for only part of the year (for example, due to a bonus), you may make repayments in some months but not others.
Frequently asked questions
How do I know which repayment plan I am on?
Your loan plan depends on when and where you studied. You can check which plan applies to you by logging in to your Student Loans Company account at gov.uk/repaying-your-student-loan, or by checking your P60 which will show which plan deductions were taken from your pay.
Does student loan repayment affect my mortgage application?
Yes, student loan repayments reduce your monthly take-home pay, which mortgage lenders factor into their affordability assessments. However, student loan debt itself does not appear on your credit file and does not directly affect your credit score.
Should I make voluntary overpayments?
Generally no, for most Plan 2 and Plan 5 borrowers. Because most graduates will have their debt written off before repaying in full, making voluntary overpayments is likely to cost more than letting the write-off apply. For Plan 1 borrowers who are likely to repay fully, overpayments may reduce the total interest paid.
What happens if I go self-employed?
If you are self-employed, student loan repayments are calculated through your Self Assessment tax return rather than through PAYE. You report your income to HMRC and any repayments due are included in your annual tax bill. The same thresholds and rates apply.
Can I stop repayments if I earn below the threshold?
Repayments stop automatically if your income falls below the threshold for your plan. You do not need to apply to pause repayments — they simply will not be deducted. If you have been overpaying, for example due to a change in income, you can claim a refund through HMRC or the Student Loans Company.