UK Student Loan Repayments Explained
Updated June 2026 · 6 min read · Free calculator inside
✓ Checked against GOV.UK
UK student loan repayments are income-contingent: you only repay once you earn above your plan's threshold, and the amount is a percentage of income above it — not the size of your debt. This guide explains the thresholds for each plan and how repayments and write-off work.
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Open the Student Loan Repayment Calculator →You repay a percentage of income above a threshold
For undergraduate plans you repay 9% of everything you earn above the repayment threshold. Postgraduate loans are 6%. Earn below the threshold and you repay nothing that month. The balance does not affect your monthly repayment.
Repayment thresholds by plan (2026)
| Plan | Annual threshold | Rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £32,745 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
Which plan you are on depends on where and when you started studying.
Worked example (Plan 2)
- You earn £35,000 and are on Plan 2 (£29,385 threshold).
- Income above the threshold: £5,615.
- Repayment: 9% of £5,615 ≈ £505 a year, or about £42 a month.
When is the loan written off?
Any remaining balance is written off after a set period — for example 30 years after you become eligible to repay on Plan 2, and 40 years on Plan 5. Many borrowers never repay the full amount, so it often behaves more like a graduate contribution than a typical loan.
Frequently Asked Questions
How much do I repay on a £35,000 salary?
On Plan 2, you repay 9% of income above £29,385 — about £505 a year (£42 a month) at a £35,000 salary. Other plans use different thresholds.
Do student loan repayments stop automatically?
Repayments stop when your income drops below the threshold and when the loan is repaid or written off. They are collected through PAYE, so they adjust automatically with your pay.
Does my student loan affect my credit score?
No. UK student loans do not appear on your credit file and do not directly affect your credit score, though lenders may consider the repayment in affordability checks.
Estimate your monthly student loan repayment
Skip the maths — get an instant, up-to-date figure with our free calculator.
Open the Student Loan Repayment Calculator →Related Guides
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⚠️ Disclaimer: This guide is for general information only and does not constitute financial, tax, or legal advice. Rates and thresholds can change — always check the latest figures on GOV.UK and consult a qualified professional before making decisions.