Student Loan Repayment Calculator UK 2026–27
Calculate your annual, monthly, and weekly student loan repayments for 2026–27 using the latest SLC thresholds. Supports Plan 1, Plan 2, Plan 4 (Scotland), Plan 5, and postgraduate loans — including combined calculations for borrowers with multiple loan types.
Thresholds correct for 2026–27 · Reviewed by the Richard Ross · Last updated April 2026
2025–26 Repayment Thresholds
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £24,990 | 9.0% |
| Plan 2 | £27,295 | 9.0% |
| Plan 4 (Scotland) | £31,395 | 9.0% |
| Plan 5 | £25,000 | 9.0% |
| Postgraduate | £21,000 | 6.0% |
Your student loan repayments
Annual repayment
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Monthly repayment
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Weekly repayment
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Enter your income and select a plan above, then press calculate to see your results.
How student loan repayments are calculated
Student loan repayments are not structured like commercial loan repayments. You repay a fixed percentage of income above a plan-specific threshold — not a fixed monthly amount based on your balance. Repayments are linked to what you earn, not what you owe.
Repayment rates and thresholds for 2026–27
For Plan 1, 2, 4, and 5 loans, you repay 9% of income above the threshold. Postgraduate loans are repaid at 6% above £21,000. If your income falls below the threshold at any point — for example, during a career break or part-time work — repayments pause automatically and resume when income exceeds the threshold again.
| Plan | Threshold | Rate | Write-off |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | 25 years |
| Plan 2 | £27,295 | 9% | 30 years |
| Plan 4 | £31,395 | 9% | 30 years |
| Plan 5 | £25,000 | 9% | 30 years |
| Postgraduate | £21,000 | 6% | 30 years |
Worked example: £35,000 salary on Plan 2
Annual student loan repayment (Plan 2, 2026–27):
- Salary: £35,000
- Plan 2 threshold: £27,295
- Income above threshold: £7,705
- Repayment: 9% × £7,705 = £693.45 per year
- Monthly deduction: £57.79
This is deducted alongside income tax and NI through PAYE. Use the take-home pay calculator to see your full net pay after all deductions.
Collection through PAYE
If you are employed, repayments are collected by your employer through PAYE alongside income tax and National Insurance. The employer receives the repayment information through your tax code and deducts the appropriate amount from each pay period. Note that bonuses also count as earnings for student loan purposes — a large bonus can trigger significant additional loan repayments on top of the usual tax and NI. If you are self-employed, repayments are calculated and collected through Self Assessment.
Salary sacrifice and student loan repayments
Salary sacrifice reduces your gross pay before student loan repayments are calculated. This means sacrificing salary into a pension reduces your student loan deduction as well as saving income tax and NI. However, lower repayments mean the loan takes longer to repay and accrues more interest — which may or may not matter depending on whether you expect to clear the balance before write-off.
Interest on student loans
Interest accrues on the outstanding balance throughout the life of the loan. Plan 1 interest is linked to either RPI or the Bank of England base rate plus 1% (whichever is lower). Plan 2 and Plan 5 interest is linked to RPI, with an additional spread based on income for Plan 2 while studying. Plan 4 uses RPI. Postgraduate loan interest is RPI plus 3%. Crucially, interest does not affect your monthly repayment amount — it only affects whether you clear the balance before write-off.
Contractors and IR35: student loans on self-employment income
Contractors who operate outside IR35 typically take a combination of salary and dividends from their limited company. Student loan repayments are calculated on employment income (salary) deducted via PAYE, and on self-employment profits collected through Self Assessment. However, dividends paid from a limited company do not count as income for student loan repayment purposes — so the salary/dividend split can affect the total repayment obligation.
Will you pay off your loan?
Whether you repay in full depends on your balance, income trajectory, and plan type. Use our loan projection calculator to see whether voluntary repayments make sense for your situation, or whether your balance will be written off before you finish repaying.
Sources: Student Loans Company — Repaying your student loan (gov.uk), Student finance — thresholds and rates (gov.uk)
Frequently asked questions
Which student loan plan am I on?
Your plan depends on when and where you started your course. Plan 1 applies if you started an undergraduate course before September 2012 (or if you studied in Northern Ireland). Plan 2 applies if you started in England or Wales between September 2012 and July 2023. Plan 4 applies if you studied in Scotland. Plan 5 applies to new students starting from August 2023. Postgraduate loans are a separate category regardless of when you studied. You can check your plan on the Student Loans Company website or your P60.
What are the student loan repayment thresholds for 2026–27?
Repayments begin once your income exceeds the threshold for your plan. For 2026–27: Plan 1 threshold is £24,990; Plan 2 is £27,295; Plan 4 (Scotland) is £31,395; Plan 5 is £25,000. Postgraduate loans have a threshold of £21,000. You repay 9% of income above the threshold (6% for postgraduate loans). Thresholds are unchanged from 2025–26.
How much student loan do I repay on a £30,000 salary?
It depends on your plan. On Plan 1 (threshold £24,990): 9% of £5,010 = £450.90 per year, or £37.58 per month. On Plan 2 (threshold £27,295): 9% of £2,705 = £243.45 per year, or £20.29 per month. On Plan 5 (threshold £25,000): 9% of £5,000 = £450 per year, or £37.50 per month. These repayments are deducted alongside income tax and NI through PAYE.
Can I have more than one student loan plan at the same time?
Yes — you can hold both an undergraduate loan (any plan) and a postgraduate loan simultaneously. Repayments for each are calculated independently based on the same income figure, and both are collected through PAYE. The calculator supports entering two plans to account for this.
When does my student loan get written off?
Write-off timescales differ by plan. Plan 1 loans are written off 25 years after entering repayment, or when you reach age 65 (whichever comes first). Plan 2 and Plan 5 loans are written off 30 years after entering repayment. Plan 4 (Scotland) is written off after 30 years. Postgraduate loans are written off 30 years after entering repayment.
Does a bonus trigger extra student loan repayments?
Yes. Student loan repayments are calculated on total earnings, including bonuses. A bonus is added to your earnings in the pay period it is received. If that takes your earnings above the monthly threshold (the annual threshold divided by 12), 9% (or 6% for postgraduate) is deducted on the excess. A £5,000 bonus for a Plan 2 borrower already earning above the threshold would trigger an extra £450 in repayments.
Do I pay student loan repayments on dividend income?
No. Dividends paid from a limited company do not count as income for student loan repayment purposes. Only employment income (salary) collected through PAYE and self-employment profits reported through Self Assessment count. This is why some contractor director-shareholders structure their income as a mix of small salary and dividends — it reduces the student loan repayment obligation alongside the tax saving.
Does making voluntary repayments reduce my monthly deductions?
Voluntary repayments reduce your outstanding loan balance and therefore the interest that accrues, but they do not directly reduce your PAYE deductions. Your employer calculates deductions based on your income, not your balance. Voluntary repayments are only likely to be worthwhile if you are on track to repay the full balance within the write-off period — otherwise the loan is written off regardless.
Does salary sacrifice reduce my student loan repayments?
Yes. Salary sacrifice reduces your gross pay before student loan repayments are calculated. If your post-sacrifice salary drops below the repayment threshold, repayments stop entirely. If it remains above, you still save because repayments are calculated on a lower figure. However, this means less of the loan is repaid each year — which may or may not matter depending on whether you expect to repay in full before write-off.
How are student loan repayments collected if I am self-employed?
Self-employed borrowers repay through Self Assessment rather than PAYE. You report your self-employment profits on your tax return, and HMRC calculates the repayment due at 9% (or 6%) of profits above the threshold. The repayment is collected as part of your annual Self Assessment payment, typically by 31 January following the end of the tax year.
Related calculators
This calculator provides estimates only. Results are based on the 2026–27 tax year. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.