Student Loan Repayment Calculator 2026/27
See exactly how much student loan is deducted from your next payslip. Covers all plans — 1, 2, 4, 5, and Postgraduate — with the latest 2026/27 thresholds.
Real 2026/27 numbers
2026/27 Student Loan Thresholds — all plans
You only repay when your income crosses the annual threshold for your plan. Below the threshold, nothing is deducted. Above it, you pay 9% (or 6% for postgraduate) on the excess only — not on your entire salary.
| Plan | 2026/27 Threshold | Rate | Write-off |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | 25 years |
| Plan 2 | £28,470 | 9% | 30 years |
| Plan 4 (Scotland) | £31,395 | 9% | 30 years |
| Plan 5 (new starters) | £25,000 | 9% | 40 years |
| Postgraduate (PGL) | £21,000 | 6% | 30 years |
Which student loan plan are you on?
Your plan depends on when you started your course and where you studied:
- Plan 1 — started before 1 September 2012 in England or Wales; or any time in Northern Ireland.
- Plan 2 — started on or after 1 September 2012 in England or Wales (most graduates from 2012–2023).
- Plan 4 — studied in Scotland (Scottish students funded by SAAS).
- Plan 5 — starting courses from August 2023 onwards in England (new system, 40-year term).
- Postgraduate (PGL) — Master's or PhD loan taken out on or after 1 August 2016.
If you're unsure, log in to the Student Loans Company portal or check your payslip — your employer submits the plan type to HMRC from your P45 or starter checklist.
What happens when you finish repaying? — write-off timelines
UK student loans are not like mortgages. Any outstanding balance is written off automatically after a set period, regardless of how much you owe. You do not need to do anything — it disappears from HMRC's records.
- Plan 1: Written off 25 years after the April you were first due to repay (usually April after graduation).
- Plan 2, Plan 4, Postgraduate: Written off 30 years after the April you were first due to repay.
- Plan 5: Written off after 40 years — the longest term. Most Plan 5 borrowers are expected to repay in full due to the lower threshold and longer term.
The write-off also applies if you reach state pension age (currently 66) before the term ends, or if you become permanently disabled and unable to work.
Will I ever pay off my student loan?
This is the most misunderstood aspect of UK student loans. Unlike a personal loan, the balance is not the key figure — what matters is your monthly repayment, which is always 9% of income above the threshold.
For Plan 2, the government's own data shows that around 75% of graduates will have some or all of their debt written off. Only high earners who reach the threshold quickly and consistently are likely to clear the full balance. For most people, treating student loans as a graduate contribution tax — rather than a debt to eliminate — is the more accurate mental model.
Interest accrues throughout repayment at RPI (Plan 1 and 4) or RPI + up to 3% (Plan 2). For Plan 5, interest is at RPI. Even with interest accumulation, if your remaining term expires, the balance is gone.
How multiple student loans work
Many graduates have both an undergraduate loan and a postgraduate loan. These are repaid simultaneously but calculated independently:
- Plan 2 repayment: 9% above £28,470
- PGL repayment: 6% above £21,000
At £35,000 salary: Plan 2 deducts £587.70/yr; PGL deducts 6% × (£35,000 − £21,000) = £840/yr. Combined deduction: £1,427.70/yr or £119/month.
Two undergraduate loans (e.g. Plan 1 and Plan 2 held simultaneously from changing course) do not stack to 18%. You pay 9% total, allocated between the two balances.
How salary sacrifice reduces your student loan
Student loan repayments are calculated on your "NI-able" gross pay — the same figure used to calculate National Insurance. Salary sacrifice reduces this figure before the loan calculation runs.
Example: You earn £32,000 and sacrifice £2,000/yr into a pension via salary sacrifice. Your NI-able pay drops to £30,000. On Plan 2 your repayment falls from 9% × £3,530 = £317.70 to 9% × £1,530 = £137.70 — a saving of £180/yr on top of your income tax and NI savings.
Check your full take-home pay
See how your student loan fits alongside Income Tax, National Insurance, and pension contributions — all in one payslip breakdown.