UK Student Loan Repayment Calculator /27 2026 | Free UK Tool

You start repaying in April after you finish or leave your course — but only once your income exceeds the threshold for your plan. For Plan 5 (2023+ starters in England), that threshold is £25,000/yr in 2026/27. For Plan 2, it's £29,385/yr. Repayments are collected automatically through PAYE (payroll), so you don't need to make manual payments unless you are self-employed.

On Plan 5 (threshold £25,000), a £30,000 salary means you repay 9% of £5,000 = £450/yr = £37.50/month. On Plan 2 (threshold £29,385), the repayment would be 9% of £615 = £55.35/yr = £4.61/month. The lower your income above the threshold, the less you repay each month.

Yes. All UK income-contingent student loans are written off after a fixed period regardless of the balance remaining — 25 years for Plan 1, 30 years for Plan 2 and Postgraduate, 40 years for Plan 5. If your income stays below the threshold throughout your career, you will make zero repayments and the debt will be cancelled at no tax cost to you.

For most borrowers, no. Because most Plan 2 and Plan 5 loans are written off before being fully repaid, making voluntary overpayments often results in you paying more total than if you had just made the minimum repayments. However, if you are a high earner likely to repay the full balance before write-off (typically earning £60,000+ consistently), early repayment can save on interest. Use a repayment projection calculator to check your specific situation.

Both are for England starters — Plan 2 applies to those who started between September 2012 and July 2023; Plan 5 applies to those starting from August 2023 onwards. Plan 5 has a lower repayment threshold (£25,000 vs £29,385), so graduates start repaying sooner. However, Plan 5 has lower interest (RPI only, no income surcharge), and the write-off period is 40 years vs 30 years for Plan 2.

Student loan repayments do not appear on your credit file and do not directly affect your credit score. However, they do reduce your take-home pay, which affects mortgage affordability calculations — lenders will see the deduction on your payslip and factor it into how much they will lend you.