Student Loan Calculator

The plan you are on depends on when and where you studied. Plan 1 is for students who started higher education before September 2012 in England, Wales, or Northern Ireland. Plan 2 covers September 2012 to July 2023 starters in England and Wales. Plan 4 covers Scottish students who applied after August 2021. Plan 5 is for students starting from August 2023 in England. Each plan has a different repayment threshold, which is the salary level above which you start repaying.

The Plan 5 threshold is set at £25,000 for 2026/27. This is lower than the Plan 2 threshold of £27,295, meaning Plan 5 borrowers start repaying earlier in their career. Repayments are 9% of income above the threshold, the same rate as all other undergraduate plans.

Yes. The most common combination is an undergraduate loan (Plan 1, 2, 4, or 5) plus a Postgraduate Loan. Repayments on each run simultaneously and are calculated independently. The Postgraduate Loan has a separate £21,000 threshold and 6% rate, applied in addition to any undergraduate plan repayments. Select all the plans that apply to you and the calculator will sum them correctly.

Repayments pause automatically when your income drops below the threshold. They resume when your income rises above it again. Loans are written off after a set number of years: Plan 1 is written off at age 65 or 25 years after repayment started; Plan 2 is 30 years after entering repayment; Plan 4 is 30 years; Plan 5 is 40 years; Postgraduate Loan is 30 years. Many borrowers, particularly those on Plan 2 or Plan 5 with large balances, are projected to have their loans written off before they fully repay.

No. Student loan repayments are collected via PAYE but are not a tax-deductible expense. They are calculated on your gross income (before pension deductions in most cases) and do not reduce the amount subject to income tax or National Insurance. This is one reason the cash impact of student loans is sometimes larger than people expect.

Generally no, particularly for Plan 2 and Plan 5 borrowers who are likely to have their loans written off before full repayment. Making voluntary overpayments reduces a balance that may be written off anyway, so you gain nothing. For Plan 1 borrowers closer to the write-off date, the maths can be different. This is a personal finance decision that depends on your projected earnings and loan balance. We would recommend checking the Student Loans Company's projections for your specific account.

Yes. When you start a new job, your employer receives a start notice from HMRC that includes your student loan plan, and repayments are deducted automatically through PAYE. If you have multiple plans, both are deducted. You do not need to tell your employer directly; the deductions are handled via your tax code and payroll. Your employer cannot see your loan balance, only which plan type applies.

Interest is added to your balance from the day your loan is first paid out, even while you are still studying. The rate depends on your plan and income. Plan 2 borrowers pay RPI inflation if earning under £27,295, rising to RPI + 3% at £49,130 and above. Plan 5 interest is capped at RPI. Plan 1 uses the lower of RPI or the Bank of England base rate plus 1%. The Postgraduate Loan accrues interest at RPI + 3% throughout. Interest continues to accrue while your income is below the repayment threshold, increasing your balance even when no repayments are made.

If you are self-employed or contracting outside PAYE (for example, as a sole trader or through your own limited company), student loan repayments are not deducted automatically each month. Instead, you declare your income via Self Assessment and repay any amount due as part of your annual tax return. This means repayments arrive in a lump sum rather than being spread monthly, which can create a cash flow surprise in your first year of self-employment. UK contractors working outside IR35 via a limited company should factor this into their financial planning.

For most Plan 2 borrowers who graduated between 2012 and 2023 with balances above £40,000, full repayment before the 30-year write-off requires sustained earnings well above the higher-rate threshold throughout their career. The Student Loans Company estimates that roughly 75% of Plan 2 borrowers will not repay in full and will have the remainder written off. If your balance is under £20,000 and you expect strong career earnings growth, full repayment before write-off is more likely. The calculator above shows your annual and monthly repayment — you can estimate your repayment trajectory from that figure.

Yes, indirectly. Mortgage lenders assess affordability based on your net disposable income after committed outgoings. Student loan repayments are treated as a monthly commitment alongside other deductions, which reduces the amount lenders will offer. A Plan 2 borrower earning £45,000 repays roughly £158/month, which lenders will factor into their affordability stress test. This does not prevent you from getting a mortgage, but it can reduce your maximum borrowing capacity by £15,000–£30,000 depending on the lender and your repayment amount.