Student Loan Calculator
💡 Plan 2 Details
Threshold: £27,295 | Repayment rate: 9% | Written off after: 30 years
Monthly Repayment
£20
Annual Repayment
£243
Amount Written Off*
£37,697
Write-off Period
30 years
*Note: Based on your current salary and balance, your loan will likely be written off before full repayment. You'll have approximately £37,697 remaining after 30 years.
Calculator Methodology
Uses official SLC thresholds for 2026/27 tax year. Repayments are 9% of income above your plan's threshold. Calculations assume constant salary and don't account for interest accrual or salary changes. Actual repayments may vary. Last verified: June 2026.
UK Student Loan Repayments Explained
Understand Plan 1, 2, 4, and 5 differences, salary thresholds, and how monthly repayments work.
UK Student Loan Plans Explained
Which repayment plan you're on depends entirely on when and where you started your course — not on how much you borrowed. This matters because each plan has a different earnings threshold before repayments start, and a different write-off period.
| Plan | Who It's For | 2026/27 Threshold | Written Off |
|---|---|---|---|
| Plan 1 | Pre-2012, NI students | £22,015 | 25 years |
| Plan 2 | 2012–2023, England/Wales | £27,295 | 30 years |
| Plan 4 | Scottish students | £31,395 | 35 years |
| Plan 5 | Post-2023, England | £25,000 | 40 years |
Will Your Loan Be Written Off Before You Repay It?
A large share of UK graduates never fully repay their student loan before it's written off — the system works more like a graduate tax than a conventional loan. Repayments are 9% of income above the threshold, so if your salary stays close to the threshold, you may pay very little over your working life before the balance is cancelled.
Is It Worth Making Voluntary Overpayments?
For most graduates on Plan 2 or 5, voluntary overpayments are rarely worthwhile — if you're likely to have your loan written off anyway, extra payments simply reduce the amount that would have been cancelled. Overpayments make more sense only if you're a high earner confident you'll clear the balance well before the write-off date, in which case you avoid future interest.
⚠️ Important Disclaimer
This calculator assumes a constant salary and does not account for interest accrual on your balance. Actual repayments are collected via PAYE and may vary. This is not financial advice — check your exact plan and balance via your Student Loans Company account.
100% private — your figures are calculated in your browser and never stored or shared.
Frequently Asked Questions
What are the different student loan plans?
Plan 1: Pre-2012 England/Wales & NI students (threshold £22,015). Plan 2: 2012-2023 England/Wales students (threshold £27,295). Plan 4: Scottish students (threshold £31,395). Plan 5: Post-2023 England students (threshold £25,000).
How much do I pay back?
You pay 9% of your income ABOVE the threshold. For example, on Plan 2 earning £35,000: (£35,000 - £27,295) × 9% = £693.45/year or £57.79/month.
When is my loan written off?
Plan 1: 25 years after April you first became liable. Plan 2 & 4: 30 years (Plan 4 is 35 years for Scottish students). Plan 5: 40 years after graduation.
Key Terms Explained
Plain-English definitions of the financial terms used in this calculator.
- APR (Annual Percentage Rate)
- The yearly cost of borrowing, including interest and standard fees, expressed as a percentage. APR lets you compare loans, credit cards and mortgages on a like-for-like basis — a lower APR means cheaper borrowing.
- Principal
- The original amount borrowed or invested, before any interest. On a repayment mortgage or loan, each monthly payment covers interest plus a slice of the principal until the balance reaches zero.
- Amortisation
- The gradual repayment of a loan through fixed regular payments. Early payments are mostly interest; later payments are mostly principal. An amortisation schedule shows this split month by month.
- Interest Rate
- The percentage charged for borrowing or paid on savings, usually per year. The Bank of England base rate influences most UK mortgage, loan and savings rates.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
