Quick answer
A UK student loan plan decides the repayment threshold and percentage used for your deductions. For Plans 1, 2, 4 and 5, the repayment rate is 9% of income above the plan threshold. For a Postgraduate Loan, the repayment rate is 6% above the postgraduate threshold.
This means someone earning below their threshold has no repayment for that period. Someone earning above the threshold repays only on the part of income above the threshold, not on their whole salary.
Estimate your student loan repayment
Use the calculator to estimate monthly, weekly and annual repayments for Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate Loans.
Student loan thresholds for 2026/27
These are the annual repayment thresholds used for UK student and postgraduate loan deductions from April 2026.
| Plan | Annual threshold | Monthly threshold | Weekly threshold | Repayment rate |
|---|---|---|---|---|
| Plan 1 | £26,900 | £2,241.66 | £517.30 | 9% above threshold |
| Plan 2 | £29,385 | £2,448.75 | £565.09 | 9% above threshold |
| Plan 4 | £33,795 | £2,816.25 | £649.90 | 9% above threshold |
| Plan 5 | £25,000 | £2,083.33 | £480.76 | 9% above threshold |
| Postgraduate Loan | £21,000 | £1,750.00 | £403.84 | 6% above threshold |
These figures are repayment thresholds, not interest rates. Interest and balance write-off rules are separate from the monthly repayment calculation.
How the repayment formula works
The formula is based on income above the threshold. If your income is not above the threshold, the repayment is zero.
income_above_threshold = max(0, annual_income − plan_threshold)
Plans 1, 2, 4 and 5:
annual_repayment = income_above_threshold × 9%
Postgraduate Loan:
annual_repayment = income_above_threshold × 6%
monthly_repayment = annual_repayment ÷ 12
Monthly repayment examples
The table below shows approximate monthly repayments at different salaries using the 2026/27 thresholds.
| Annual salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgraduate Loan |
|---|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £0.00 | £0.00 | £20.00 |
| £30,000 | £23.25 | £4.61 | £0.00 | £37.50 | £45.00 |
| £35,000 | £60.75 | £42.11 | £9.04 | £75.00 | £70.00 |
| £45,000 | £135.75 | £117.11 | £84.04 | £150.00 | £120.00 |
These are simple estimates based on annual income. Actual payroll deductions can vary by pay period, bonuses, changes in income and employer payroll timing.
Which student loan plan are you on?
Your plan depends on where and when you studied, what type of course you took, and which student finance system applied. Your student loan account, payslip or official loan correspondence should show the plan being used.
Undergraduate plans
Plans 1, 2, 4 and 5 are income-contingent student loan plans with a 9% repayment rate above the relevant threshold.
Postgraduate Loan
Postgraduate Loans have a separate threshold and a 6% repayment rate above that threshold.
If you are unsure, check your online student loan account rather than guessing. The wrong plan can make your estimate misleading.
What if you have a student loan and a Postgraduate Loan?
If you have an undergraduate student loan and a Postgraduate Loan, you may repay both at the same time. That means a 9% repayment above your undergraduate plan threshold and a separate 6% repayment above the Postgraduate Loan threshold.
| Example | Salary | Plan 2 repayment | Postgraduate repayment | Total monthly estimate |
|---|---|---|---|---|
| Plan 2 + Postgraduate Loan | £35,000 | About £42.11 | About £70.00 | About £112.11 |
| Plan 5 + Postgraduate Loan | £35,000 | About £75.00 | About £70.00 | About £145.00 |
How repayments are taken from pay
If you are employed, repayments are normally deducted through payroll when your earnings are above the relevant threshold for the pay period. The deduction is then shown on your payslip.
This is why monthly estimates may not exactly match every payslip. If you receive overtime, bonuses, commission or irregular pay, the deduction can change because the calculation follows the income in that pay period.
Check take-home pay impact
Student loan repayments can reduce take-home pay. Use the take-home pay calculator alongside this guide when planning salary or job changes.
How student loans differ from normal loans
A normal personal loan usually has a fixed monthly repayment based on the amount borrowed, APR and term. A UK student loan repayment is usually income-based, so the monthly deduction changes with earnings.
| Feature | Student loan | Personal loan |
|---|---|---|
| Repayment amount | Based on income above threshold. | Usually fixed by loan amount, APR and term. |
| If income falls | Repayment can fall or stop below threshold. | Payment normally remains due. |
| Affordability effect | Affects take-home pay. | Affects fixed monthly commitments. |
| Useful calculator | Student loan repayment calculator. | Loan repayment calculator. |
What affects your repayment?
- Plan type: each plan has a different threshold.
- Income level: repayments are based only on income above the threshold.
- Pay period: weekly, monthly or irregular pay can change deductions.
- Postgraduate Loan status: postgraduate repayments can be added separately.
- Employment status: employed and self-employed repayment processes can differ.
- Overseas status: repayment rules and thresholds can differ if you live overseas.
Common mistakes to avoid
- Using take-home pay in the formula: thresholds are based on earnings before tax and deductions, not what lands in your bank.
- Mixing up plan types: Plan 2 and Plan 5 have different thresholds.
- Forgetting postgraduate repayments: a Postgraduate Loan can be deducted alongside an undergraduate plan.
- Treating it like a normal loan: repayments depend on income, not a fixed monthly balance schedule.
- Ignoring payslip changes: overtime, bonuses and irregular earnings can change deductions.
FAQs
How are UK student loan repayments calculated?
Repayments are calculated from income above your plan threshold. Plans 1, 2, 4 and 5 use 9% above threshold. Postgraduate Loans use 6% above threshold.
What are the 2026/27 student loan repayment thresholds?
The 2026/27 thresholds are Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 and Postgraduate Loan £21,000.
Do I repay if I earn below the threshold?
If your income is below the threshold for your plan, the estimated repayment is £0 for that period.
Can I repay a student loan and Postgraduate Loan at the same time?
Yes. You may repay 9% above your undergraduate plan threshold and 6% above the Postgraduate Loan threshold at the same time.
Is a student loan the same as a normal personal loan?
No. Student loan repayments are usually income-based. A normal personal loan normally has a fixed repayment based on the amount borrowed, APR and term.