Student Loan Repayment Calculator UK

How Student Loan Repayments Work

Student loan repayments in the UK are income-contingent. You only repay when you earn above a certain threshold, and the amount you repay is based on your salary, not your loan balance. If your income drops below the threshold, repayments stop automatically.

For most plans, you repay 9% of everything above the threshold. Postgraduate loans have a lower rate of 6%. If you have both types, each is calculated separately.

Repayment Plan Thresholds

Example Repayments

£30,000 salary — Plan 2

You earn £2,705 above the £27,295 threshold. At 9%, your annual repayment is £243 — just £20 per month. At this income level, interest likely exceeds your repayment, meaning the balance grows rather than shrinks.

£35,000 salary — Plan 2

You earn £7,705 above threshold. Annual repayment: £693 — roughly £58 per month. A typical graduate three to five years into their career would be at this level.

£50,000 salary — Plan 1

You earn £25,010 above the £24,990 threshold. Annual repayment: £2,251 — about £188 per month. At this income, you are making meaningful progress on the balance.

£50,000 salary — Plan 2 vs Plan 5

Plan 2 threshold is £27,295 — repayment is £2,043/year (£170/month). Plan 5 threshold is £25,000 — repayment is £2,250/year (£188/month). Plan 5 has a lower threshold but a longer write-off period (40 years vs 30 years).

When Does My Student Loan Get Written Off?

Your student loan is not permanent. Each plan has a different write-off date after which any remaining balance is cancelled:

• Plan 1: 25 years after the April you were first due to repay, or when you reach age 65 — whichever comes first
• Plan 2: 30 years after the April you were first due to repay
• Plan 4: 30 years after the April you were first due to repay, or when you reach age 65
• Plan 5: 40 years after the April you were first due to repay
• Postgraduate: 30 years after the April you were first due to repay

Most Plan 2 borrowers will never repay the full amount. The Institute for Fiscal Studies estimates that only around 20-25% of graduates will repay in full. For many, overpaying a student loan is a poor financial decision — the money would be better used elsewhere.

Should I Overpay My Student Loan?

This depends on whether you are on track to repay in full before the write-off date. If you are not — and most people are not — then overpaying simply means paying more than you would have if you had let it run its course. Think of student loan repayments more like a graduate tax than a traditional debt.

The main exception is if you are a high earner on Plan 1 (where interest rates are lower) and you will clearly repay in full well before the write-off date. In that case, overpaying saves you interest. Speak to a financial adviser if you are unsure.