Student Loan Repayment Calculator UK 2026/27 — Plans 1, 2, 4 & 5
Student loan repayments in the UK are income-based — you repay 9% of earnings above your repayment threshold (6% for Postgraduate loans). Use this calculator to estimate your monthly repayments, total interest, and how long until your loan is written off.
Repayment thresholds 2026/27: Plan 1 £24,990/year, Plan 2 £27,295/year, Plan 4 £31,395/year, Plan 5 £25,000/year, Postgraduate £21,000/year. Interest rates vary — check Student Loans Company for the current rate applied to your loan. This is an estimate only.
Student Loan Repayment Thresholds 2026/27
| Plan | Annual threshold | Monthly threshold | Repayment rate | Write-off period |
|---|---|---|---|---|
| Plan 1 | £24,990 | £2,082 | 9% | Age 65 or 25 years from April after graduation |
| Plan 2 | £27,295 | £2,274 | 9% | 30 years from April after graduation |
| Plan 4 (Scotland) | £31,395 | £2,616 | 9% | 30 years from April after graduation |
| Plan 5 | £25,000 | £2,083 | 9% | 40 years from April after graduation |
| Postgraduate | £21,000 | £1,750 | 6% | 30 years from April after graduation |
How Student Loan Repayments Work
Student loan repayments are deducted automatically through payroll if you are employed, or via Self Assessment if self-employed. You only repay when your income exceeds the threshold — if you earn less, you pay nothing that month. Repayments do not show on your credit file. The loan is not a traditional debt — if you do not repay in full within the write-off period, the remainder is cancelled.
For many graduates on Plan 2 and Plan 5, the loan functions more like a graduate tax than a traditional loan — the majority of borrowers will not repay in full before write-off, meaning total repayments are capped by the write-off regardless of the original balance.
Should You Make Overpayments?
Overpayments are generally not recommended unless you are certain you will repay the full balance before write-off. If you are unlikely to repay in full (common for Plan 2 and Plan 5), making overpayments simply increases the total you pay with no benefit — the remaining balance is written off either way. Check your projected write-off date before making any voluntary overpayments.
When Does Your Student Loan Get Written Off?
Every plan type has a fixed write-off period, running from the April after you graduated or left your course, and it's this write-off date — not how much you've actually repaid — that determines whether the loan ever gets cleared in full. Plan 1 loans are written off 25 years after the April you first became eligible to repay (or at age 65 for loans taken out before 2006, whichever is earlier). Plan 2 loans are written off 30 years after the April you became eligible to repay. Plan 4 (Scotland) loans are written off 30 years after eligibility. Plan 5 loans, introduced for new borrowers from August 2023, are written off 40 years after eligibility — a notably longer period than Plan 2, reflecting the lower repayment threshold and interest rate structure that came with the Plan 5 reforms. Because most graduates on Plan 2 or Plan 5 never clear the full balance before write-off, for many people a student loan behaves less like a conventional debt and more like an additional 9% tax on income above the threshold, for as long as they're still repaying.
How Interest Is Added to Your Loan
Interest accrues on your student loan balance from the day you take out each instalment, continuing throughout your studies and afterwards until the loan is either repaid in full or written off. The rate charged depends on your plan and, for some plans, your income — Plan 2 loans, for example, historically charged a sliding scale of interest that rose the more you earned, up to RPI plus 3%, though the exact mechanism has been adjusted over the years. Because interest is added constantly, including while you're still studying, many graduates see their loan balance grow larger than what they originally borrowed in the years immediately after leaving university, even while they're making regular repayments — this is normal and expected under the current system, and doesn't indicate anything has gone wrong with your repayments.