How Student Loan Repayments Work in the UK

The basics

Student loan repayments in the UK are not like a normal loan. You only repay when you earn above a certain threshold, and the amount is based on what you earn — not what you owe. Any remaining balance is written off after 25-40 years depending on your plan.

Repayment thresholds 2025/26

Plan	Annual threshold	Monthly threshold	Rate
Plan 1	£26,065	£2,172	9%
Plan 2	£28,470	£2,373	9%
Plan 4	£32,745	£2,729	9%
Plan 5	£25,000	£2,083	9%
Postgraduate	£21,000	£1,750	6%

How repayments are calculated

You repay 9% (or 6% for postgraduate loans) of everything you earn above your plan's threshold. For example, on Plan 2 with a £35,000 salary:

• Amount above threshold: £35,000 - £28,470 = £6,530
• Annual repayment: £6,530 × 9% = £588
• Monthly repayment: £588 ÷ 12 = £49

Which plan am I on?

• Plan 1: Started before September 2012 (England/Wales) or any Scottish/NI student
• Plan 2: Started after September 2012 in England or Wales
• Plan 4: Scottish students (from April 2021)
• Plan 5: Students starting courses from August 2023
• Postgraduate: Postgraduate Master's or Doctoral loan

Key things to know

• Repayments come out of your pay automatically through PAYE — like tax
• If your income drops below the threshold, repayments stop automatically
• If you have multiple plans, you repay each separately
• Self-employed graduates repay through their Self Assessment tax return

Try the calculator

Use our Student Loan Repayment Calculator to see exactly how much you would repay each month on your salary.