Precision Utility
Student Loan
Calculator
Repayment Rate
9%
Above Threshold
Plan Based
Estimate your UK student loan repayments based on your salary, loan plan and balance. Unlike conventional loans, UK student loans are repaid at 9% of your income above the repayment threshold — deducted automatically through PAYE. Most borrowers never repay in full before their loan is written off. Enter your details to see your monthly and annual repayments, how long repayment will take, and whether your loan will be written off.
Loan Details
Monthly Repayment
£0
Annual Repayment
£0
Years to Repay
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Total Repaid
£0
Total Interest
£0
Repayment Outcome
Enter your details to see whether your loan will be repaid in full or written off.
Repayment Threshold
£0
Interest Rate
0%
Write-off Period
--
Balance at Write-off
£0
How UK student loan repayments work
UK student loans work completely differently from conventional loans. You do not make fixed monthly payments. Instead, your employer deducts repayments automatically through PAYE based on how much you earn. You repay 9% of your gross income above your plan's repayment threshold — or 6% for Postgraduate Loans. If you earn below the threshold, you pay nothing at all.
Interest accrues on your balance from the day your first payment is made to your university. The rate depends on your loan plan and, for Plan 2, on your income. However, the interest rate is largely irrelevant for most borrowers because the loan is written off after a set period regardless of the remaining balance. For Plan 2 borrowers, that period is 30 years from the April after you leave your course.
This calculator simulates your repayments year by year, applying your salary growth rate to project future earnings. It tracks the balance each year — adding interest and subtracting repayments — to determine whether you will repay in full or have the remaining balance written off. The results show your current monthly and annual repayments based on today's salary, plus the total amount you will repay over the life of the loan.
Because repayments are income-contingent, your monthly deduction changes automatically as your salary rises. A pay rise means higher repayments but also a faster route to clearing the balance. Conversely, if your income drops below the threshold — for example during a career break — repayments pause entirely while interest continues to accrue.
What you need to know about student loan plans
Plan 1 covers loans taken out before September 2012 in England and Wales, and all undergraduate loans in Scotland and Northern Ireland before 2023. The repayment threshold is £24,990 and the interest rate is 6.25%. Plan 1 loans are written off 25 years after the April you were first due to repay, or when you reach age 65 if you took the loan before 2006.
Plan 2 is the most common plan for recent English and Welsh graduates who started university between September 2012 and August 2023. The threshold is £27,295. Interest is charged at RPI plus up to 3% depending on your income, currently capped at 7.3%. The loan is written off 30 years after the April following your graduation or leaving your course.
Plan 4 replaced Plan 1 for Scottish borrowers from April 2021. The threshold is £31,395 — the highest of any plan — and the interest rate matches Plan 1 at 6.25%. Plan 4 loans are written off 30 years after the first April following graduation.
Plan 5 applies to students who started courses in England from September 2023 onwards. The threshold is £25,000 and interest is charged at RPI only (no additional percentage). Crucially, Plan 5 loans are written off after 40 years — significantly longer than any other plan.
Postgraduate Loans cover taught and research master's degrees and some doctoral programmes. The threshold is £21,000 and you repay 6% of income above the threshold — separate from and in addition to any undergraduate loan repayments. Postgraduate Loans are written off 30 years after the April you were first due to repay.
All thresholds and interest rates are reviewed annually by the government. The Student Loans Company (SLC) manages repayment collection. Rates shown are for the 2024/25 tax year. For the latest figures, check the GOV.UK student loan repayment page.
When student loans are written off
Every UK student loan has a write-off date. After the write-off period expires, any remaining balance is cancelled and you owe nothing further. The write-off period depends on your plan:
| Plan | Write-off Period | Threshold |
|---|---|---|
| Plan 1 | 25 years | £24,990 |
| Plan 2 | 30 years | £27,295 |
| Plan 4 | 30 years | £31,395 |
| Plan 5 | 40 years | £25,000 |
| Postgrad | 30 years | £21,000 |
The Institute for Fiscal Studies estimates that around 70–80% of Plan 2 borrowers will never repay their loan in full. For most graduates, a student loan functions more like a graduate tax — you pay a percentage of your income for a fixed period, and then it disappears. This is why making voluntary overpayments is rarely worthwhile unless you are confident you will repay in full.
Frequently asked questions
Which student loan plan am I on?
Check your original loan paperwork or log in to your Student Loans Company (SLC) online account. Plan 1 covers loans taken out before September 2012 in England and Wales, and all Scottish and Northern Irish loans before 2023. Plan 2 applies to England and Wales loans from September 2012. Plan 4 covers Scottish loans from September 1998. Plan 5 applies to loans from September 2023 onwards.
Will my student loan be written off?
Yes. Plan 1 loans are written off 25 years after the April you were first due to repay. Plan 2 loans are written off after 30 years. Plan 4 loans are written off after 30 years. Plan 5 loans are written off after 40 years. Postgraduate Loan balances are written off 30 years after the April you were first due to repay.
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. They are not treated as conventional debt by credit reference agencies. However, mortgage lenders may factor your student loan repayments into affordability assessments, as they reduce your disposable income.
How much do I repay on my student loan each month?
You repay 9% of your gross income above your plan's repayment threshold. For Postgraduate Loans, you repay 6% above the threshold. If you earn below the threshold, you pay nothing. Repayments are deducted automatically from your salary by your employer through PAYE, similar to income tax and National Insurance.
What are the student loan repayment thresholds for 2024/25?
For the 2024/25 tax year: Plan 1 threshold is £24,990, Plan 2 is £27,295, Plan 4 is £31,395, Plan 5 is £25,000, and Postgraduate Loan is £21,000. You only repay on income above these thresholds. Thresholds are reviewed annually by the government.
Do most people repay their student loan in full?
No. The Institute for Fiscal Studies estimates that around 70–80% of Plan 2 borrowers will not repay their loan in full before it is written off after 30 years. Only higher earners with smaller balances tend to repay in full. For most graduates, a student loan works more like a graduate tax than a traditional debt.
Should I make voluntary repayments on my student loan?
For most borrowers, voluntary repayments are not worthwhile. If your loan will be written off before you repay it in full, extra payments simply reduce the amount that gets written off — you pay more overall. Voluntary repayments only make sense if you are on track to repay in full and want to reduce the total interest charged.
What interest rate is charged on UK student loans?
Plan 1 and Plan 4 loans are charged 6.25%. Plan 2 loans are charged RPI plus up to 3% depending on income, currently capped at 7.3%. Plan 5 loans are charged RPI only. Rates are updated each September by the Student Loans Company based on the Retail Prices Index.