Student Loan Repayment Calculator 2026-27
Calculate your student loan repayments for Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Quick Answer
UK student loan repayments (2026/27): Plan 1 9% above £26,900; Plan 2 9% above £29,385; Plan 4 9% above £33,795 (Scotland); Plan 5 9% above £25,000; Postgraduate 6% above £21,000.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
UK Student Loan plan thresholds (2026/27)
| Plan | Who | Threshold | Rate |
|---|---|---|---|
| Plan 1 | Started before Sep 2012 (E&W) | £26,900 | 9% |
| Plan 2 | Sep 2012 to Aug 2023 (E&W) | £29,385 | 9% |
| Plan 4 | Scotland | £33,795 | 9% |
| Plan 5 | From Aug 2023 (E&W) | £25,000 | 9% |
| Postgraduate | Master or PhD loans | £21,000 | 6% |
How It Works
Student loan repayments are collected through PAYE alongside tax and NI. You repay 9% of income above your plan's threshold (6% for Postgraduate Loans). For 2026/27: Plan 1 threshold is £26,900, Plan 2 is £29,385, Plan 4 (Scotland) is £33,795, and Plan 5 is £25,000.
Repayments are calculated per pay period, not annually. If you are on multiple plans, you repay each one separately. For example, if you have a Plan 2 loan and a Postgraduate Loan, you pay 9% on income above £29,385 for Plan 2, plus 6% above £21,000 for the Postgraduate Loan.
Remaining balances are written off after a set period: 25 years for Plan 1, 30 years for Plans 2 and 4, and 40 years for Plan 5. Interest is charged at RPI plus up to 3% depending on income and plan type.
Which student loan plan are you on? Plan 1: started before September 2012 in England/Wales OR Northern Ireland borrowers — threshold £26,900, 9% repayment, written off 25 years after course ended (or age 65 if older borrower). Plan 2: started September 2012-August 2023 in England/Wales — £29,385, 9%, 30-year writeoff. Plan 4: Scotland (replacing Plan 1 in 2021) — £33,795, 9%, 30 years. Plan 5: started September 2023+ in England — £25,000, 9%, 40-year writeoff. Postgraduate: master's or PhD loans — £21,000, 6%, alongside any undergraduate plan.
Why student loans are NOT really 'debt' for most graduates. With write-off after 25-40 years and 9% repayment on income above threshold, most Plan 2/5 graduates will never repay in full. Estimated 73% of Plan 5 borrowers will not repay full loan + interest (IFS analysis). The loan effectively acts as a graduate tax of 9% above threshold for up to 30-40 years. Voluntary overpayment usually doesn't save money for those unlikely to repay in full — invest the money instead.
Interest rate caps and current rates. Plan 2 and Plan 5 charge RPI + up to 3% depending on income (currently capped at RPI). Plan 1 charges RPI. The Government caps student loan interest to prevent excessive growth. As of 2026/27, Plan 2/5 interest is around 4.3% for high earners; Plan 1 around 1.5%. Despite this, most graduates won't notice — repayments are deducted via PAYE and the loan balance is incidental until you're earning enough to repay.
Self-employed and overseas repayments. Self-employed: pay via Self Assessment based on profits over threshold. Overseas working: still required to pay if income exceeds threshold equivalent — Student Loans Company sends a 'Repayment Schedule' based on country-specific thresholds (e.g. £29,385 UK = $40,000 US, €34,000 EU equivalents). Failure to declare overseas earnings means SLC can charge UK threshold at 9% — which can be unfair. Always declare overseas employment within 30 days.
Example: £32,000 salary, Plan 2 loan
- Income above threshold: £32,000 − £29,385 = £4,705
- Annual repayment: £4,705 × 9% = £423.45
- Monthly deduction: £35.29
Frequently Asked Questions
- Which UK student loan plan am I on?
- Plan 1: started before September 2012 in England/Wales or Northern Ireland — £26,900 threshold, 9% over threshold, write-off after 25 years. Plan 2: Sept 2012 to Aug 2023 in England/Wales — £29,385, 9%, 30-year write-off. Plan 4: Scotland — £33,795, 9%, 30 years. Plan 5: from Sept 2023 in England — £25,000, 9%, 40-year write-off. Postgraduate Loan: £21,000 threshold, 6% rate. Can have BOTH undergraduate and postgraduate plans simultaneously.
- Why most graduates won't fully repay.
- IFS estimates 73% of Plan 5 borrowers will never fully repay before 40-year write-off. Plan 2: ~17% will fully repay. The loan effectively functions as a 9% graduate tax for those who never repay. Voluntary overpayments are usually wasted money — invest the money elsewhere instead. Only worth fully repaying if: you'll consistently earn well above threshold for 25+ years (doctors, finance, law).
- How to check and adjust deductions.
- Check via your payslip — should show 'Student Loan' deduction at 9% of pay above weekly/monthly threshold. Confirm Student Loans Company (SLC) and HMRC have correct plan via your Personal Tax Account on gov.uk. Common errors: wrong plan triggers wrong threshold (Plan 1 instead of Plan 2 = costs £216/year more); deductions continuing after loan paid off; deductions started before threshold income reached. Contact your employer payroll to correct.