How Student Loan Repayments Work in the UK
Understand UK student loan plans, thresholds, repayments, interest, write-off periods, and overpayment decisions.
Open Student Loan Repayment CalculatorStart with your plan type
UK student loan repayments depend on the plan you are on, not simply the size of the balance. Use the AtlasPeak Student Loan Repayment Calculator to choose Plan 1, Plan 2, Plan 4, Plan 5 or Postgraduate and estimate what payroll would deduct from your salary.
Plan 1, Plan 2, Plan 4 and Plan 5 are normally repaid at 9% of income above the plan threshold. Postgraduate loans are repaid at 6% above a lower threshold. If you have both an undergraduate and postgraduate loan, you may repay both at the same time.
Thresholds and repayments
For 2026/27 the thresholds used here are Plan 1 at GBP24,990, Plan 2 at GBP27,295, Plan 4 at GBP31,395, Plan 5 at GBP25,000 and Postgraduate at GBP21,000. If you earn under your plan threshold, your repayment is normally zero. If you earn above it, only the income above the threshold is used.
For example, a Plan 2 borrower on GBP35,000 repays 9% of the income above the threshold, not 9% of the whole salary. This is why student loan deductions rise with earnings but do not behave like a normal fixed loan payment.
Interest and balances
Interest changes the balance, but it does not directly change the monthly payroll deduction. That is the part many graduates find confusing. A low or middle earner can make repayments and still see the balance rise if interest is larger than the repayment.
That does not always mean the borrower is worse off. Many graduates never clear the full balance before write-off, so the practical cost is the stream of payroll deductions rather than the headline debt.
Plan 2 versus Plan 5
Plan 2 and Plan 5 are especially important for recent graduates. Plan 2 usually has a 30-year write-off window, while Plan 5 has a longer 40-year window and a different threshold. That can mean more years of deductions for newer borrowers, even though the annual repayment formula still depends on income above the threshold.
Overpaying is rarely an automatic win. It can make sense for high earners likely to repay in full, but many people should be cautious because voluntary payments cannot usually be reclaimed if the loan would otherwise have been written off.
Use the calculator for your own salary
The best way to understand your position is to model your actual plan, salary, balance and expected salary growth. The Student Loan Repayment Calculator gives the monthly deduction, annual repayment, projected balance and write-off period so you can see the moving parts clearly.
Treat the result as a planning estimate. Payroll timing, interest updates, overseas rules and policy changes can affect real outcomes.
FAQ
Do I have to pay back my student loan if I earn under the threshold?
No. UK student loan repayments are normally due only on income above your plan threshold.
What happens to my student loan after 30 years?
Many plans are written off after a set period, commonly 25, 30 or 40 years depending on plan and start date.
Is it worth overpaying my student loan?
It can be worth it for high earners likely to repay in full, but many borrowers should be cautious because balances may be written off.
Which student loan plan am I on?
Your plan depends on where and when you studied. Check your Student Loans Company account or payroll notice.
Try the calculator
Put the guide into practice with the Student Loan Repayment Calculator and check your own numbers.
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Last updated: July 2026