Student Loan Repayment Calculator
How it works
Student loans are an income-contingent tax in disguise. You repay a fixed percentage of income above the plan threshold for a set number of years (typically 25–40), then any remaining balance is written off. Most graduates never repay the full balance, especially on Plan 2 and Plan 5.
Worked example
Aisha is on Plan 2, earning £40,000.
- (£40,000 − £28,470) × 9% = £1,037.70/yr
- About £86 per month
Who should use this
- •Recent graduates checking payslip deductions
- •Anyone with multiple plans (e.g. undergrad + postgrad)
- •Considering whether to make voluntary repayments
- •Self-employed graduates filing Self Assessment
Common mistakes
- ×Overpaying voluntarily when you'll never clear the balance anyway
- ×Forgetting Postgraduate is on top of your undergrad plan
- ×Confusing Plan 2 (England post-2012) with Plan 5 (post-Aug 2023)
- ×Not telling a new employer your plan, leading to wrong deductions
Frequently asked questions
Which plan am I on?▾
Generally: started uni before 2012 in E&W → Plan 1; 2012–Aug 2023 → Plan 2; from Aug 2023 → Plan 5; Scotland → Plan 4; postgrad master's/PhD → Postgraduate.
When is my loan written off?▾
Plan 1: age 65 or 25 years; Plan 2: 30 years; Plan 4: 30 years; Plan 5: 40 years; Postgraduate: 30 years from first April after graduation.
Should I make voluntary overpayments?▾
Usually no — most borrowers don't repay in full and overpayments would be wasted. Only worthwhile if you're a high earner who'll definitely clear the loan.
Do bonuses get extra deductions?▾
Yes — PAYE deducts based on each pay period, so a big bonus month can trigger a higher deduction. It self-corrects over the year.
What's the interest rate?▾
Varies by plan and income. Plan 2/5 use RPI plus up to 3%; Plan 1/4 use the lower of RPI or Bank Rate +1%.
Does the loan affect my credit score?▾
No — student loans don't appear on your credit file.