Understanding Student Loan Repayments
UK student loan repayments are income-contingent — you only repay when you earn above your plan's threshold. Repayments are deducted automatically through PAYE at 9% (or 6% for Postgraduate loans) of income above the threshold. Remaining balances are written off after a set period.
Repayment Thresholds 2025-26
Plan 1: £24,990 | Plan 2: £27,295 | Plan 4: £31,395 | Plan 5: £25,000 | Postgraduate: £21,000. These thresholds are reviewed annually. If you have both an undergraduate and postgraduate loan, you repay both simultaneously — 9% for the undergraduate and 6% for the postgraduate, totalling up to 15% of income above the respective thresholds.
Frequently Asked Questions
Which plan am I on?â–¾
Plan 1: English/Welsh students who started before September 2012, and all Northern Irish students. Plan 2: English/Welsh students who started from September 2012. Plan 4: Scottish students. Plan 5: English students starting from August 2023. Check your Student Loans Company (SLC) online account for confirmation.
Should I repay my student loan early?â–¾
This depends on whether you will repay your loan in full before it is written off. If your balance will be written off anyway (common for Plan 2 borrowers earning under ~£50,000), early repayment means you pay more than you need to. If you will repay in full, early repayment saves interest. Martin Lewis's advice: only repay early if you are on track to clear the loan before write-off.
Do student loans affect my credit score?â–¾
Student loans do not appear on your credit report and do not directly affect your credit score. However, mortgage lenders are aware of student loan repayments and factor them into affordability calculations, reducing the amount you can borrow.
Calclypso Editorial Team
Repayment thresholds verified against SLC 2025-26 rates. Last updated: April 2026. This calculator is for estimation purposes only.