How Much Will I Actually Repay on My UK Student Loan? (Plan by Plan, 2026)

The most important thing about a UK student loan is that it does not behave like a debt: you repay 9% of income above a threshold, and whatever is left after 25–40 years is wiped. Your monthly cost depends only on salary — not on how much you borrowed. On £35,000 a Plan 2 graduate pays about £49/month; someone earning below the threshold pays nothing at all. This guide walks through each plan and the one big decision (overpay or not); put your own salary into the student loan calculator as you read.

It works like a tax, not a loan

Repayments are taken through payroll alongside income tax and National Insurance: 9% of everything above your plan's threshold (6% for postgraduate loans). Earn less than the threshold — from a career break, part-time work or unemployment — and repayments stop automatically. There is no minimum payment, missing months does not hurt your credit score, and the balance does not appear on your credit file. The "loan" framing causes most of the anxiety; economically it is a time-limited graduate tax.

The plans: thresholds and write-off dates

Plan	Who	Repay 9% above (approx.)	Written off after
Plan 1	England/Wales pre-2012	£26,065	25 years
Plan 2	England/Wales 2012–2023	£28,470	30 years
Plan 4	Scotland	£32,745	30 years
Plan 5	England from Aug 2023	£25,000	40 years
Postgraduate	Master's/PhD loans	£21,000 (at 6%)	30 years

Thresholds move most Aprils, so treat these as close approximations. Two plans can run at once — a Plan 2 undergraduate loan plus a postgraduate loan means 9% + 6% above the respective thresholds. The Plan 1 vs Plan 2 comparison shows how the same salary produces different deductions.

What you repay at £30k, £40k and £60k

Monthly repayment on each plan (approximate, 2025–26 thresholds):

Salary	Plan 1	Plan 2	Plan 4	Plan 5
£30,000	~£30	~£11	£0	~£38
£40,000	~£105	~£86	~£54	~£113
£60,000	~£254	~£236	~£204	~£263

Notice the pattern: the plan sets when repayments start and stop; salary sets the amount. A pay rise of £1,000 always costs you £90 a year in extra repayments (9%) — on top of tax and NI. See the combined take-home effect in the salary after tax calculator.

Why the balance grows and why that can be fine

Interest (linked to RPI, plus up to 3% on Plan 2 for higher earners) is added to the balance, so many graduates watch the number climb even while repaying. Here is the counterintuitive part: for anyone unlikely to clear the loan before write-off, the balance and the interest rate are irrelevant. You will pay 9% above threshold for 30–40 years regardless of whether the balance says £40,000 or £90,000 — then it vanishes. Interest only matters for high earners who will actually finish repaying, because it extends how long the 9% lasts.

Should you ever pay it off early?

• Usually no for middle earners. If you are unlikely to clear the balance before write-off, every voluntary £1,000 you throw at it is £1,000 given away that changes nothing — the 9% continues, and the write-off would have erased that balance anyway.
• Possibly yes for high earners. If your salary means you will repay in full well before write-off, clearing it early works like any debt payoff and saves the interest.
• Run the number, don't guess. The break-even depends on salary, salary growth, plan and remaining years — the calculator projects whether you are on course to repay in full or reach the write-off.

The genuinely comforting summary: nobody chases you, low earners pay nothing, the debt dies of old age, and the only people who need a strategy are the high earners who can afford one. Not financial advice — but the arithmetic is on the side of calm.

FAQ