Student Loan Repayment Calculator UK (2026/27)
UK student loan repayments are calculated as a fixed percentage of your gross income above statutory annual thresholds, deducted automatically via PAYE. In 2026/27, undergraduate plans repay at 9% above their respective thresholds: Plan 1 (£26,900), Plan 2 (£29,385), Plan 4 (£33,795), and Plan 5 (£25,000). On a £35,000 salary, an English graduate on Plan 2 repays £505.35 per year (£42.11 monthly).
Key 2026/27 Statutory Facts
- Plan 1 threshold is £26,900 (9% repayment rate above threshold). [Source: GOV.UK]
- Plan 2 threshold is £29,385 (9% repayment rate above threshold). [Source: GOV.UK]
- Plan 4 (Scottish students) threshold is £33,795 (9% repayment rate above threshold). [Source: GOV.UK]
- Plan 5 (English courses starting Aug 2023 onwards) threshold is £25,000 (9% rate). [Source: GOV.UK]
- Postgraduate loan threshold is £21,000 (6% rate) and repays concurrently with undergraduate loans. [Source: GOV.UK]
How Student Loan Deductions Work (2026/27)
Student loan repayments are calculated on gross income exceeding statutory annual thresholds, deducted via PAYE:
| Repayment Plan | Annual Threshold | Monthly Threshold | Rate Above Threshold |
|---|---|---|---|
| Plan 1 | £26,900 | £2,241.66 | 9% |
| Plan 2 | £29,385 | £2,448.75 | 9% |
| Plan 4 (Scotland) | £33,795 | £2,816.25 | 9% |
| Plan 5 | £25,000 | £2,083.33 | 9% |
| Postgraduate Loan | £21,000 | £1,750.00 | 6% |
Methodology & Assumptions
Our 2026/27 calculations strictly apply primary legislation published by HM Revenue & Customs. Specific assumptions include:
- Calculations reflect the 2026/27 tax year (6 April 2026 to 5 April 2027).
- Standard tax codes 1257L (England, Wales, NI) and S1257L (Scotland) are assumed unless adjusted.
- Class 1 National Insurance thresholds are annualized; in actual UK payroll, NI is assessed on a non-cumulative pay-period basis.
- Special allowances such as Blind Person’s Allowance (£3,070) or Marriage Allowance (£1,260) are excluded from baseline calculations unless selected.
Frequently Asked Questions (2026/27)
How much do you pay back on a UK student loan?
You repay 9% of your gross annual income above your plan’s statutory threshold: Plan 1 (£26,900), Plan 2 (£29,385), Plan 4 (£33,795), or Plan 5 (£25,000). Postgraduate loans repay at 6% of earnings over £21,000. If your gross earnings drop below your threshold, deductions immediately cease.
How much student loan do I pay per month on a £30,000 salary?
On a £30,000 salary in 2026/27, your repayment depends on your plan: Plan 1 pays £279.00/yr (£23.25/mo); Plan 2 pays £55.35/yr (£4.61/mo); Plan 4 pays £0.00 (under £33,795); Plan 5 pays £450.00/yr (£37.50/mo); and Postgraduate loans repay £540.00/yr (£45.00/mo).
How much student loan do I pay on a £35,000 salary?
On a £35,000 salary in 2026/27, annual repayments are: Plan 1 repays £729.00 (£60.75/mo); Plan 2 repays £505.35 (£42.11/mo); Plan 4 repays £108.45 (£9.04/mo); and Plan 5 repays exactly £900.00 (£75.00/mo, calculated as 9% of £10,000 above the £25,000 threshold).
Do UK student loans get wiped after 25, 30, or 40 years?
Yes. Cancellation periods depend on your plan: Plan 1 loans are written off after 25 years or at age 65; Plan 2 and Postgraduate loans are written off after 30 years; Plan 4 loans are cancelled after 30 years or at age 65; and Plan 5 loans are cancelled after 40 years.
What happens if you never earn enough to repay your student loan?
If your annual earnings remain below your plan threshold (£29,385 for Plan 2), you repay £0.00. Any unpaid principal balance and accumulated interest will never be chased by debt collectors and are completely cancelled at the statutory write-off date.
Can you opt out of paying back your UK student loan?
No. If your income exceeds your repayment threshold, employers are legally required to deduct repayments from your salary via PAYE. If you are self-employed, repayments are calculated and collected automatically through your HMRC Self Assessment tax return.
Is it ever worth paying off a UK student loan early?
For the majority of UK graduates, voluntary early repayment is financially disadvantageous. Because debt is cancelled after 30 or 40 years regardless of balance, only consistent top-decile lifetime earners who will fully repay the debt before write-off benefit from overpaying.
Can you pay off UK student loans in a lump sum?
Yes. You can log into your online Student Loans Company (SLC) repayment account or call their helpline to request a full settlement quote and pay off your balance by debit card or bank transfer without early-settlement penalty fees.
Why does Martin Lewis describe UK student loans as a graduate tax?
Martin Lewis notes that UK student loans function like a 9% marginal graduate tax above an income threshold rather than commercial debt. Your monthly repayment depends solely on what you earn, not what you owe, and unpaid balances are written off after statutory periods.
Related UK Tax & Finance Calculators
Take-Home Pay Calculator
Calculate your net pay after Income Tax, National Insurance, and Student Loan deductions for 2026/27.
Calculate Salary → TaxIncome Tax Calculator
View exact tax band breakdowns for England, Wales, NI, and Scotland (all 6 devolved tiers).
Calculate Tax → PropertyStamp Duty (SDLT) Calculator
Calculate residential SDLT for standard moves, first-time buyer relief, and additional properties.
Calculate SDLT →