Which Plan Are You On?
- Plan 1 — Started uni in England/Wales before September 2012, or in Northern Ireland
- Plan 2 — Started uni in England/Wales between September 2012 and July 2023
- Plan 4 — Studied in Scotland (any start date)
- Plan 5 — Started uni in England from August 2023 onwards
- Postgraduate Loan — Masters or PhD loan from 2016 onwards
Not sure? Check your Student Loans Company (SLC) account at gov.uk/student-loan-balance.
Repayment Thresholds & Rates (2025/26)
- Plan 1: Repay 9% of income above £24,990
- Plan 2: Repay 9% of income above £27,295
- Plan 4: Repay 9% of income above £31,395
- Plan 5: Repay 9% of income above £25,000
- Postgraduate: Repay 6% of income above £21,000
Example: Plan 2, Earning £35,000
£35,000 − £27,295 = £7,705 × 9% = £693/year or £58/month
How Repayment Works
If you're employed, repayments are deducted automatically from your pay (like tax and NI). Your employer handles this through PAYE. If you're self-employed, you pay through Self Assessment.
Can You Have Multiple Loans?
Yes. If you have a Plan 2 AND a Postgraduate Loan, both are deducted simultaneously. On £35,000:
- Plan 2: 9% above £27,295 = £58/month
- Postgrad: 6% above £21,000 = £70/month
- Total: £128/month
⚠️ Having both Plan 2 and Postgrad at the same time means 15% of your income above the lower threshold is going to loan repayments. Factor this into your budget.
When Are Loans Written Off?
- Plan 1: Written off when you turn 65
- Plan 2: Written off 30 years after the April you were first due to repay
- Plan 4: Written off 30 years after the April you were first due to repay
- Plan 5: Written off 40 years after the April you were first due to repay
- Postgraduate: Written off 30 years after the April you were first due to repay
💡 Most graduates on Plan 2 will never fully repay their loans. The average graduate with ~£50k debt earning an average salary won't clear it in 30 years. Don't overpay unless you know you'll actually clear the balance.
Should You Overpay?
It depends on your balance and income:
- Don't overpay if your balance is high (£40k+) and your salary is average — it'll be written off before you clear it
- Consider overpaying if your balance is low (under £10k) and you're close to clearing it — saves you interest
- Definitely overpay if you're on Plan 1 with a small remaining balance — you'll clear it faster and save interest
Interest Rates
- Plan 1 & 4: Lower of RPI or Bank of England base rate + 1%
- Plan 2: RPI + up to 3% depending on income (while studying: RPI + 3%)
- Plan 5: RPI only (no income-based loading)
- Postgraduate: RPI + 3%
Impact of Salary Sacrifice
If you use salary sacrifice for pension contributions, your gross salary is reduced. This can reduce your student loan repayments too — a hidden bonus of salary sacrifice.
💡 Example: £35,000 salary with £200/month salary sacrifice = £32,600 effective salary. Plan 2 repayment drops from £58/month to £40/month — saving £18/month on loan repayments as well as tax and NI.