Student loan repayments depend on which plan you’re on. Here’s exactly how much you pay, when you start repaying, and when the debt is written off.
Student loan repayments in the UK are not like ordinary debt. You only repay when you earn above a threshold, repayments are automatically deducted from your salary alongside tax and NI, and any remaining balance is eventually written off. Understanding which plan you are on is essential, because the thresholds and write-off periods are very different.
Includes student loan deductions — select your plan for an accurate figure
Your repayment plan depends on when you started your course and where you studied:
| Plan | Who is on this plan? |
|---|---|
| Plan 1 | Started undergraduate study before 1 September 2012 in England or Wales. Also: Scottish and Northern Irish students on most courses. EU students who started before 2012. |
| Plan 2 | Started undergraduate study on or after 1 September 2012 in England or Wales. Most postgraduate loans are Plan 2. Some older EU students. |
| Plan 5 | Started undergraduate study on or after 1 August 2023 in England. The newest plan with the lowest threshold and longest write-off period. |
| Postgraduate Loan | Separate repayment from undergraduate loans. 6% rate above £21,000 threshold, written off after 30 years. |
If you are unsure which plan you are on, check your Student Finance England (or equivalent) account, or look at your payslip — the deduction should be labelled with the plan type.
On Plan 1, you repay 9% of your income above the threshold of £24,990 per year (2026/27). The threshold rises each April in line with the Retail Price Index (RPI).
Plan 1 loans carry a relatively low interest rate — the lower of RPI or the Bank of England base rate plus 1%. This makes Plan 1 loans relatively benign compared to later plans.
The loan is written off when you reach age 65 (or 25 years after the April you became eligible for repayment if you took out the loan before 2006, whichever comes first).
Plan 2 applies to most graduates who studied in England or Wales from 2012 onwards. You repay 9% of income above £27,295 per year in 2026/27.
The Plan 2 threshold is reviewed each April. It was frozen for several years at £27,295 before being unfrozen, affecting many graduates significantly.
Plan 2 loans accrue interest at RPI plus up to 3% while you study, and RPI plus 0–3% once you graduate (the percentage above RPI depends on your earnings). This means loan balances can grow substantially for lower earners who are repaying less than the interest accruing each month.
The loan is written off 30 years after the April when you became eligible to repay (typically the April after you graduate).
Plan 5 applies to students who started undergraduate study in England on or after 1 August 2023. The threshold is £25,000 per year — lower than Plan 2 — meaning graduates start repaying sooner.
The most significant change for Plan 5 is the write-off period: 40 years rather than 30. This means Plan 5 graduates will be repaying into their 60s, and many will repay significantly more in total than the original amount borrowed — because the extended period allows interest to compound for longer.
Interest on Plan 5 loans is capped at RPI, which is lower than Plan 2’s potential RPI+3%.
| Annual salary | Plan 1 (£24,990) | Plan 2 (£27,295) | Plan 5 (£25,000) |
|---|---|---|---|
| £25,000 | £0.75/month | £0/month | £0/month |
| £28,000 | £23/month | £5/month | £22.50/month |
| £32,000 | £53/month | £35/month | £52.50/month |
| £40,000 | £113/month | £95/month | £112.50/month |
| £50,000 | £188/month | £170/month | £187.50/month |
| £60,000 | £263/month | £245/month | £262.50/month |
Note that repayments are the same regardless of your total loan balance — whether you borrowed £30,000 or £80,000, the monthly repayment on a £40,000 salary is the same. The balance only affects how long you repay for.
Interest accrues on your student loan balance throughout repayment. For many graduates, particularly on Plan 2, the monthly repayment may be less than the interest accruing — meaning the total balance grows even while they make payments.
| Plan | Interest rate |
|---|---|
| Plan 1 | Lower of RPI or Bank of England base rate + 1% (currently ~4.25%) |
| Plan 2 | RPI + 0–3% depending on earnings (currently ~6–9%) |
| Plan 5 | RPI only (currently ~3.5–4%) |
| Postgraduate Loan | RPI + 3% |
All UK student loans are eventually written off with no further liability:
The write-off means that if your income is low throughout your career, you may never fully repay your loan and the balance simply disappears. For many borrowers — particularly those in lower-earning careers or who work part-time — this is the expected outcome.
The answer is “probably not” for most people — but it depends entirely on your expected future earnings.
If you are on Plan 2 and expect to earn above £40,000–£50,000 throughout your career, you will likely repay your full loan before the 30-year write-off. In this case, overpaying reduces interest and clears the debt faster — potentially saving money.
However, if you expect to earn below these levels, overpaying may be irrational because the loan gets written off anyway. You are essentially prepaying a debt that would have been forgiven.
For Plan 5 graduates, the 40-year write-off period and lower threshold means even higher earners may reach the write-off, making the overpay calculation less clear-cut.
See your exact take-home pay including your student loan deduction