UK Student Loan Repayment Guide 2026/27
Covering Plan 1, 2, 4, 5 and Postgraduate loans · Last updated September 2026 · Not financial advice
GetStudentLoan is a free, browser-based calculator for UK student loan repayments. It covers all five current loan plans and projects your balance year by year so you can see when your loan will be written off and how much you're likely to repay in total.
All calculations happen entirely in your browser. No personal or financial data is ever sent to or stored on our servers. GetStudentLoan requires no account and no sign-up.
The most important thing to understand
UK student loans are not like commercial debt. You repay a percentage of what you earn above a threshold — not a fixed monthly amount tied to what you borrowed. The size of your loan balance does not directly affect your monthly repayment. What matters is your income.
This is why economists often describe UK student loans as a graduate tax rather than a traditional loan. For the majority of borrowers, the loan will be partially or fully written off after the write-off period, regardless of how much remains outstanding.
2026/27 repayment thresholds and rates
| Plan | Who | Threshold | Rate | Write-off | Interest |
|---|
| Plan 1 | Pre-Sep 2012 (Eng/Wales) or any NI student | £26,900 | 9% | 25 years | 3.2% (RPI or base+1%, whichever lower) |
| Plan 2 | Sep 2012–Jul 2023 (Eng/Wales) | £29,385 | 9% | 30 years | RPI to RPI+3%, capped at 6% |
| Plan 4 | Scottish students from 1998 | £33,795 | 9% | 30 years | 3.2% (RPI or base+1%, whichever lower) |
| Plan 5 | Started Aug 2023+ in England | £25,000 | 9% | 40 years | 3.0% (RPI only) |
| Postgraduate | Master's or Doctoral loan | £21,000 | 6% | 30 years | 6.0% (RPI+3%, capped at 6%) |
RPI: 3.0% (April 2026). Thresholds confirmed by HMRC for 2026/27. Plan 2 threshold frozen at £29,385 until April 2030.
How to calculate your monthly repayment
Your monthly repayment is: (annual gross salary − repayment threshold) × 9% ÷ 12. For Postgraduate loans the rate is 6%. HMRC rounds each monthly deduction down to the nearest pound.
If you earn below your plan's threshold, you repay nothing that month. Repayments restart automatically once your income rises above the threshold again.
Plan 2 worked examples (threshold £29,385):
£25,000 salary — below threshold — £0 per month
£30,000 salary — (£30,000 − £29,385) × 9% ÷ 12 = £5 per month
£35,000 salary — (£35,000 − £29,385) × 9% ÷ 12 = £42 per month
£40,000 salary — (£40,000 − £29,385) × 9% ÷ 12 = £80 per month
£50,000 salary — (£50,000 − £29,385) × 9% ÷ 12 = £159 per month
£60,000 salary — (£60,000 − £29,385) × 9% ÷ 12 = £230 per month
How interest is calculated
Interest accrues on your outstanding balance daily. Crucially, the interest rate does not affect your monthly repayment — it only affects how quickly your balance grows. This is different from commercial loans where a higher rate means higher monthly payments.
- Plan 1 and Plan 4: The lower of RPI inflation or the Bank of England base rate plus 1%. Currently 3.2%.
- Plan 2: Slides between RPI (if earning at or below the threshold of £29,385) and RPI+3% (if earning above £52,885), capped at 6% for 2026/27.
- Plan 5: RPI only — currently 3.0%. No additional percentage on top.
- Postgraduate: RPI+3%, capped at 6% — currently 6.0%.
Interest rates are reviewed each September based on the previous March RPI figure. They can rise or fall annually.
What happens when your balance grows faster than repayments?
For many Plan 2 graduates on average salaries, the interest accruing each year exceeds the annual repayment amount — meaning the loan balance actually grows despite making repayments. This is normal and expected. It does not mean something has gone wrong. The key insight is that your repayments are capped at 9% of income above the threshold — the balance growing larger does not increase what you pay monthly.
This is precisely why voluntary overpayments are often a poor financial decision for most borrowers.
Will my loan be written off?
Plan 2 loans are written off 30 years after the April you first became liable for repayment. Plan 1 is written off after 25 years (or when you turn 65 for some older loans). Plan 4 is 30 years. Plan 5 is 40 years. Postgraduate loans are written off after 30 years.
The Institute for Fiscal Studies estimates that around 70–75% of Plan 2 graduates will have some debt written off. Whether you repay in full depends on your starting balance, salary over your career and the interest rate applied. Use the calculator to model your personal outcome.
Should I make voluntary overpayments?
For most borrowers, the answer is no. If your loan is on track to be written off before full repayment, voluntary overpayments simply reduce the amount cancelled at write-off — they do not save you money. You would be better off directing that money into a pension, ISA or other savings.
Voluntary overpayments only make financial sense if you are a high earner who will definitely repay the full balance before write-off. In that scenario, overpaying reduces the total interest you pay. Use the calculator's overpayment field to model the difference — the verdict banner will tell you which situation you are in.
Frequently asked questions
Does my student loan affect my credit score?
No. UK student loans do not appear on your credit file and do not affect your credit score. However, mortgage lenders may take your student loan repayments into account when assessing affordability, as the deductions reduce your take-home pay.
What counts as income for repayment purposes?
Repayments are based on your gross employment income (before tax), self-employment profits, and some investment income. Pension contributions made via salary sacrifice reduce your repayable income. Student loan repayments are calculated before income tax — they come out of your gross pay alongside PAYE and National Insurance.
What if I have multiple loan plans?
If you have both an undergraduate loan and a Postgraduate loan, you repay both simultaneously — 9% of income above your undergraduate threshold and 6% of income above the Postgraduate threshold of £21,000. These are separate deductions. Use the Postgraduate loan checkbox in the calculator to model both together.
What if I work abroad?
You are still required to repay your student loan if you move abroad. The Student Loans Company sets overseas repayment amounts based on the cost of living in your country of residence. Contact the SLC directly if you plan to work outside the UK.
Important disclaimer
GetStudentLoan is provided as a free guidance tool only. All projections are estimates based on your inputs and current rates, which are subject to change. This is not financial advice. For official information visit
GOV.UK — Repaying your student loan or contact the Student Loans Company directly.
Also from the Get suite
GetStudentLoan is part of a suite of free UK personal finance tools. Also try GetPayslip.co.uk for free payslip estimates including student loan deductions, GetInvoice.co.uk for free HMRC-compliant invoices, GetVAT.co.uk for our VAT calculator, and GetMileage.co.uk for HMRC mileage allowance calculations.