Which Student Loan Plan Am I On?
Your loan plan depends on where you studied and when you started your course. There are four plans currently in repayment:
- Plan 1 — You started an undergraduate course before September 2012 in England or Wales, or you studied at any time in Northern Ireland. If you took a postgraduate loan before August 2006 in Scotland, that is also Plan 1.
- Plan 2 — You started an undergraduate course between September 2012 and July 2023 in England or Wales. This is the most common plan.
- Plan 4 — You studied in Scotland, regardless of when you started. The Student Awards Agency Scotland (SAAS) administers this plan, and it has the highest repayment threshold of all four plans.
- Plan 5 — You started an undergraduate course on or after 1 August 2023 in England. Plan 5 has the longest write-off period (40 years) and a lower threshold than Plan 2.
If you're unsure which plan you're on, check your Student Finance correspondence, log in to the Student Loans Company (SLC) portal at studentloanrepayment.co.uk, or look at your payslip — the deduction code identifies the plan.
Note: postgraduate loans (Master's and Doctoral loans) are repaid under a separate Postgraduate Loan plan at 6% above a different threshold (£21,000 in 2025/26). This calculator covers undergraduate plans only.
Repayment Thresholds & Write-Off Periods
The table below summarises the key figures for each plan in 2025/26. You only repay when your income exceeds the threshold — and the loan is automatically written off after the write-off period, regardless of how much remains.
| Plan |
Annual Threshold 2025/26 |
Monthly Threshold |
Weekly Threshold |
Write-Off Period |
Interest Basis |
| Plan 1 | £24,990 | £2,082.50 | £480.58 | 25 years | RPI or Bank Rate +1% |
| Plan 2 | £28,470 | £2,372.50 | £547.50 | 30 years | RPI to RPI+3% (income-linked) |
| Plan 4 | £31,395 | £2,616.25 | £603.75 | 30 years | RPI or Bank Rate +1% |
| Plan 5 | £25,000 | £2,083.33 | £480.77 | 40 years | RPI+3% while studying, RPI once earning |
Repayments are always calculated at 9% of income above the threshold, regardless of the plan. Thresholds are reviewed annually and can change — the figures above are for the 2025/26 tax year.
Worked Examples
These examples use Plan 2 figures for 2025/26 (threshold: £28,470, rate: 9%).
£30,000 salary — Plan 2
Income above threshold£1,530
Annual repayment£137.70
Monthly repayment£11.48
Impact on take-homeMinimal
£40,000 salary — Plan 2
Income above threshold£11,530
Annual repayment£1,037.70
Monthly repayment£86.48
Effective income deduction2.6%
£60,000 salary — Plan 2
Income above threshold£31,530
Annual repayment£2,837.70
Monthly repayment£236.48
Effective income deduction4.7%
Important Considerations
Most Plan 2 and Plan 5 borrowers never fully repay
The majority of Plan 2 and Plan 5 borrowers will not clear their full balance before write-off. Interest accrues throughout the repayment period, but this is largely irrelevant if you are on course to hit the write-off date — you will simply stop repaying at that point, regardless of the remaining balance. Think of it less like a traditional loan and more like a graduate income tax that expires after 30 or 40 years.
Voluntary overpayments rarely make financial sense
Making voluntary overpayments only makes financial sense if you are confident you will repay the full balance before the write-off date — otherwise you are paying off a debt that would have been cancelled for free. For most Plan 2 and Plan 5 borrowers with typical graduate salaries, voluntary overpayments are not recommended. Use an independent financial adviser before making large overpayments.
Your threshold is based on total taxable income — not just your salary
Student loan repayments are calculated on your total taxable income as reported via Self Assessment or PAYE. This includes salary, savings interest, rental income, dividends and other investment income — not just your employment earnings. If you have multiple income sources, your actual repayment may be higher than a salary-only estimate suggests.
Frequently Asked Questions
How do I find out which loan plan I'm on?
The easiest way is to log in to the Student Loans Company (SLC) online service at studentloanrepayment.co.uk. You can also check your original Student Finance England, Student Finance Wales, or SAAS award letter. If you're employed, your payslip will show the deduction — it will be labelled "Student Loan Plan 1", "Plan 2", etc. Alternatively, call the SLC on 0300 100 0611 with your National Insurance number to hand.
Should I overpay my student loan?
For most Plan 2 and Plan 5 borrowers, voluntary overpayments are not financially advantageous unless you are on track to clear the full balance before write-off. If your projected payoff time (ignoring interest) already exceeds the write-off period, any extra payments simply reduce debt that would have been cancelled. Plan 1 borrowers with smaller balances and higher salaries are more likely to repay in full — in those cases, overpaying can save interest. Always model your specific situation before making large voluntary payments.
What happens if I go below the threshold?
Repayments pause automatically when your income falls below the threshold. This happens if you go part-time, take unpaid leave, become self-employed with lower earnings, or stop working entirely. No repayments are deducted and your balance continues to accrue interest (if applicable) while you are below the threshold. When your income rises above the threshold again, repayments resume automatically via PAYE or Self Assessment. There is no penalty for periods below the threshold.
How is student loan interest calculated?
Interest is calculated differently for each plan. Plan 1 and Plan 4 charge the lower of RPI or Bank Rate plus 1% — in 2025/26 this is approximately 4.3%. Plan 2 charges RPI while you're studying, then RPI to RPI+3% on a sliding scale once you earn above the threshold, up to a maximum of RPI+3% above £51,245. The 2025/26 estimate is approximately 7.3%. Plan 5 charges RPI+3% while studying, then RPI once repaying. Interest compounds daily and is added to the balance monthly. The interest rate is reviewed annually by the government.
Does student loan affect my mortgage application?
Student loan repayments reduce your net monthly income, which is factored into mortgage affordability assessments. Lenders look at your disposable income after all deductions including student loan. On a £40,000 salary with a Plan 2 loan, the repayment is approximately £86/month — this will slightly reduce your maximum borrowing capacity. However, student loans do not appear on your credit file as a "debt" in the traditional sense, so they do not directly affect your credit score. The impact on borrowing capacity is modest for most people.
What happens to my loan if I leave the UK?
Your repayment obligation continues if you move abroad. You must notify the Student Loans Company when you leave the UK and provide details of your overseas income. Repayments are then assessed annually based on the cost of living in your country of residence, using overseas income thresholds set by the SLC. Failure to notify the SLC or provide income evidence can result in a fixed overseas repayment amount being applied. The write-off date is not affected by living abroad — the clock keeps running from when you were first due to repay.
Related Calculators