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How to Use the Student Loan Repayment Calculator
- Pick your plan — Plan 1, 2, 4 (Scotland), 5 (new post-2023 English loans), or Postgraduate. If you don't know, check the SLC online account or your payslip.
- Enter your annual gross salary — the figure before tax and NI.
- Optionally enter your current balance and projected salary growth to see when (or if) your loan will clear before write-off.
- Click "Calculate" — the tool shows your monthly and annual repayment, how much salary exceeds your threshold, and the write-off timeline.
Which student loan plan am I on?
Plan depends on where and when you studied. In brief:
- Plan 1 — English/Welsh/NI students who started uni before 1 September 2012, plus all Northern Irish students since. Also applies to 1998-2005 courses. Threshold £26,065, rate 9%, written off at age 65 or 25 years after repayment begins.
- Plan 2 — English/Welsh students who started uni between September 2012 and July 2022. Threshold £28,470, rate 9%, written off 30 years after the April following graduation.
- Plan 4 — Scottish students (any start year) taking out loans from the Student Awards Agency Scotland (SAAS). Threshold £32,745, rate 9%, write-off same as Plan 2.
- Plan 5 — English students starting university on or after 1 August 2023. Threshold £25,000, rate 9%, written off 40 years after repayment begins (longest write-off of any plan).
- Postgraduate Loan — Master's and PhD top-up loans. Threshold £21,000, rate 6%, written off 30 years after repayment begins. This is charged in addition to any undergrad plan you also have.
If you have both an undergrad loan (Plan 1/2/4/5) and a Postgraduate Loan, you pay 9% above the undergrad threshold AND 6% above £21,000 — simultaneously. That's why someone with both loans on £35,000 salary can pay over £1,100 per year to SLC on two separate lines of their payslip.
How the 9% calculation actually works
Student loan repayments are not calculated on your full salary — only on the portion above your plan's threshold. On Plan 2 (£28,470 threshold), someone earning £35,000 pays 9% of (£35,000 − £28,470) = 9% of £6,530 = £587.70 per year, or about £49 per month. Someone earning exactly £28,470 pays zero. Someone on £28,500 pays just £2.70 per year.
The calculation uses gross salary for PAYE employees and taxable profit for self-employed. Deductions happen automatically via PAYE for employees — the same way as income tax and NI. Self-employed borrowers pay through Self Assessment, annually.
Important: student loan repayments don't affect your tax-free Personal Allowance or the bands above it. They sit alongside income tax and NI, not inside them. Earning £60,000 on Plan 2 means you pay income tax, NI, 9% student loan above £28,470, and (if you have kids) HICBC — all separately.
When will my loan be written off?
Each plan has a fixed write-off period. For Plan 1, it's 25 years after the April you first became liable (or age 65 for the oldest borrowers, whichever is sooner). Plan 2 and Plan 4 write off 30 years after first liability. Plan 5 writes off 40 years — the longest, meaning most Plan 5 borrowers will be paying into their 60s. Postgraduate Loans write off after 30 years.
The government's own projections suggest the majority of Plan 2 and Plan 5 borrowers will never clear their loans before write-off. That has an important implication: overpaying doesn't always make financial sense. If you're likely to be written off regardless, voluntary overpayments just reduce what the government would have written off anyway — your money would do more in a pension or ISA.
Should I overpay my student loan?
The answer depends on three factors: your loan plan (which determines write-off odds), your expected career earnings trajectory, and what else you'd do with the money. A simple rule:
- Plan 1 with high career earnings: overpaying may save interest, because Plan 1 interest can be high (RPI-based) and you'll probably clear it before write-off. Model with the calculator.
- Plan 2: overpayment rarely helps. The 30-year write-off catches most borrowers, and voluntary overpayments just reduce written-off debt.
- Plan 5: 40-year write-off and £25,000 threshold means almost everyone pays across their full working life. Overpayment definitely doesn't help.
- Postgrad: similar to Plan 2 — overpaying rarely moves the needle if you're also on an undergrad plan.
The counterfactual matters. £100/month extra into a pension from basic-rate tax relief plus employer match often outperforms £100/month overpayment on a loan you'll never clear.
What happens if I work abroad?
Student Loans Company (SLC) requires you to declare overseas earnings and pay a monthly instalment calculated on a schedule that converts the UK threshold into a local equivalent adjusted for cost of living. This is called an "overseas repayment schedule". If you don't declare, the SLC can chase the debt internationally — UK judgments are enforceable in most OECD countries, and ignoring the SLC can lead to court action, wage attachment, or loan acceleration (demanding the full balance immediately).
Declare overseas earnings through the SLC online form within 8 weeks of leaving the UK. The local threshold varies by country: for example, US borrowers had a threshold around $35,000 in 2024, and Australian borrowers around AU$43,000. These figures update annually.
How interest accrues on student loans
Interest rates vary by plan and by your income. Plan 1 uses the Bank of England base rate plus 1% or RPI, whichever is lower (usually RPI in high-inflation years, capped). Plan 2 uses RPI while studying and RPI+0-3% after, depending on income — high earners face the full RPI+3%. Plan 5 mirrors Plan 2's logic. Postgraduate uses RPI+3% flat.
High interest matters less than it looks, because the write-off catches most borrowers before interest becomes material. You might accrue tens of thousands in notional interest on a Plan 2 loan — but if it's written off in year 30, the accrued interest disappears with it. Only people who clear the loan early (typically high-earning graduates) actually pay the interest.
How is a UK student loan repayment calculated?
You pay 9% of your salary above the plan threshold (6% for Postgraduate loans), deducted via PAYE. On Plan 2 with a £35,000 salary, you pay 9% of (£35,000 - £28,470) = £587.70 per year, or about £49 per month. If your salary equals or is below the threshold, you pay nothing.
Which plan am I on?
Plan 1: English/Welsh/NI students who started before September 2012, plus all Northern Irish students since. Plan 2: English/Welsh who started September 2012-July 2022. Plan 4: Scottish students (SAAS loans). Plan 5: English students starting August 2023 or later. Postgraduate: Master's and PhD top-up loans (paid alongside any undergrad plan). Check your SLC online account or payslip if unsure.
When will my student loan be written off?
Plan 1: 25 years after you became liable or age 65, whichever comes first. Plan 2: 30 years after the April following graduation. Plan 4: 30 years. Plan 5: 40 years — the longest write-off period. Postgraduate: 30 years. Most Plan 2, Plan 5, and Postgraduate borrowers will reach the write-off without fully clearing the loan.
Should I overpay my student loan?
Usually not, especially for Plan 2 and Plan 5. Because the government projects most of these borrowers will be written off before clearing, voluntary overpayments just reduce debt that would have been written off anyway. Overpayment can help Plan 1 borrowers with high career earnings who'll clear before 25 years. Otherwise, pension contributions or ISA savings usually outperform overpayment.
Do I pay student loan on bonuses?
Yes. Student loan is calculated on total taxable pay, so bonuses, commission, and overtime all count. A large one-off bonus can push you temporarily into a higher student loan payment for that month — but since SLC uses annual earnings, that levels out at year-end through the PAYE system.
What if I work abroad?
You must declare overseas earnings to the Student Loans Company (SLC) within 8 weeks of leaving the UK. SLC applies an overseas repayment schedule based on the local cost-of-living-adjusted threshold. Not declaring is a breach of the loan agreement — SLC can chase debts internationally through court action and wage attachment.
Does my student loan affect my credit score?
No. UK student loans are not on your credit file — they are government debt administered separately. However, student loan repayments reduce your disposable income, which can affect mortgage affordability calculations when lenders assess how much they'll lend you.
Can I pay off my student loan early?
Yes, at any time, either via the SLC online portal or by bank transfer. There are no early-repayment penalties. Decide carefully whether this actually saves you money — model your situation in the calculator. For most Plan 2/5/Postgrad borrowers, early repayment is financially worse than directing the money elsewhere.
