The education loan repayment calculator helps UK students estimate monthly repayments based on their income, plan type (1, 2, 4, 5, or Postgraduate), and the 2025/26 repayment thresholds. For most plans, you repay 9% of income above your threshold — or 6% for postgraduate loans.
TL;DR — Quick Summary
- Plan 1 threshold: £26,065 (9% repayment)
- Plan 2 threshold: £28,470 (9% repayment)
- Plan 4 threshold: £32,745 (9% repayment)
- Plan 5 (new): £25,000 threshold (9% repayment, from April 2026)
- Postgraduate threshold: £21,000 (6% repayment)
- Use calculators to estimate repayments based on salary and plan
- You repay only when earning above your plan’s threshold
Why You Need an Education Loan Repayment Calculator in 2025
Let’s be real — student finance in the UK can feel like alphabet soup: Plan 1, Plan 2, Plan 4, Plan 5… Each plan has different thresholds, interest rates, and repayment rules. That’s where the education loan repayment calculator comes in handy. It gives you a clear, realistic idea of what you’ll actually pay each month — before that first payslip lands.
Whether you studied in England, Scotland, Wales, or Northern Ireland, the calculator adapts to your plan, salary, and repayment date. Think of it as your financial GPS — not to scare you, but to help you plan smarter.
How the UK Student Loan Repayment System Works (2025 Overview)
In 2025/26, the government uses five active student loan repayment plans. Here’s what’s current:
| Plan | Applies To | Annual Threshold | Repayment % | Interest Type |
|---|---|---|---|---|
| Plan 1 | Pre‑2012 undergraduates | £26,065 | 9% | Varies with inflation |
| Plan 2 | Post‑2012 England/Wales | £28,470 | 9% | RPI‑linked |
| Plan 4 | Scottish borrowers | £32,745 | 9% | Varies with inflation |
| Plan 5 | Students from Aug 2023 (repay from Apr 2026) | £25,000 | 9% | RPI only (no real interest) |
| Postgraduate | Any UK postgraduate course | £21,000 | 6% | RPI‑linked |
(Source: UK Government, HMRC updates for 2025/26)
Repayments start only after you cross your plan’s threshold. Your employer automatically deducts repayments via PAYE, so there’s no separate bill — but it’s smart to know how much that deduction will be.
How the Education Loan Repayment Calculator Works
A student loan repayment calculator uses three key inputs:
- Annual income before tax
- Your repayment plan (1, 2, 4, 5, or Postgraduate)
- Optional: interest rate, bonuses, or multiple jobs
The calculator then estimates:
- Monthly and yearly repayment amounts
- Total paid over time (if income stays consistent)
- Remaining balance after a certain number of years
It’s not just about numbers — it helps visualize your post‑graduation finances and avoid surprises.
Example: How Repayments Differ by Income
Let’s run through two quick case examples based on 2025 thresholds.
| Income | Plan Type | Threshold | Repayment % | Monthly Payment |
| £32,000 | Plan 2 | £28,470 | 9% | £265/month |
| £45,000 | Plan 2 | £28,470 | 9% | £1,491/year (£124/month) |
| £38,000 | Plan 4 | £32,745 | 9% | £473/year (£39/month) |
| £30,000 | Plan 5 | £25,000 | 9% | £450/year (£37/month) |
Case 1 — Sam, Plan 2 (England, graduate 2018): earns £32,000 → pays £265/month.
Case 2 — Amira, Plan 4 (Scotland): earns £38,000 → pays just £39/month due to higher threshold.
Case 3 — Jordan, Plan 5 (England, started 2023): will repay from 2026 but can already project £37/month at £30k salary.
How Interest Is Calculated
Interest is where things get confusing, so here’s the simple version:
- Plan 1: Interest = RPI or Bank of England rate + 1% (whichever lower)
- Plan 2: RPI + up to 3% depending on income
- Plan 4: Inflation‑based (RPI only)
- Plan 5: RPI only (no real interest margin)
- Postgraduate: RPI + 3%
Your loan balance grows monthly, but repayments are based on income, not the total owed. After a set period — usually 30 or 40 years — any remaining balance is written off.
Common Questions About Student Loan Repayments in 2025
❓ When do I start repaying my loan?
You begin repayments the April after graduation — but only if your income exceeds your plan’s threshold.
❓ What if I move abroad?
You still repay, but through international repayment arrangements. You’ll need to report income to the Student Loans Company.
❓ Can I repay early?
Yes, but not always necessary. Early repayment only helps if you’re sure you’ll clear the balance before the write‑off period.
❓ What happens if I lose my job or earn less?
Your repayments automatically pause if income drops below the threshold — no penalties.
❓ What’s the write‑off period?
- Plan 1: 25 years after first due date
- Plan 2 & 5: 30 years
- Plan 4: 30 years
- Postgraduate: 30 years
Understanding Plan 5 — The Big Change for Future Graduates
From April 2026, a new plan (Plan 5) applies to English and Welsh students who started after August 2023. Here’s what’s different:
- Lower threshold (£25,000)
- Longer repayment term (40 years)
- Interest capped at inflation (RPI)
This means repayments start earlier but grow slower — more people will likely repay in full over time.
Example: Emma earns £28,000 in 2026 under Plan 5. She repays 9% of £3,000 (£270 a year / £22.50 per month). Manageable — but over 40 years, it adds up.
Smart Tips to Manage Your Student Loan
- Track your income and tax code — errors can lead to overpayments.
- Keep your Student Loans Company account updated.
- If self‑employed, include loan repayments in your Self‑Assessment tax return.
- Don’t stress if you can’t repay fast — these loans are income‑based, not credit‑scored.
- Re‑check thresholds each April; they often rise with inflation.
Real‑World Example: Two Graduates, Two Outcomes
Aiden (Plan 2, earns £50,000): Pays £1,935/year. After 20 years, he’s repaid around £38,700. His loan is fully cleared before write‑off.
Leah (Plan 5, earns £27,000): Pays just £180/year. Her loan is written off after 40 years — she never overpays, but total repayment is minimal.
Different plans, same principle: income defines the pace, not debt anxiety.
People Also Ask
What is the education loan repayment threshold for 2025 UK?
Plan 1: £26,065 | Plan 2: £28,470 | Plan 4: £32,745 | Plan 5: £25,000 | Postgrad: £21,000.
How much will I repay if I earn £30,000?
It depends on your plan — typically £30–£50 per month.
Do student loans affect credit scores?
No, they don’t appear on credit reports unless you default.
Can I switch repayment plans?
No. Your plan depends on when and where you studied.
Is there a penalty for overpaying?
No penalties — but check if overpayments make financial sense.
Conclusion — Here’s What This Means for You
Understanding your student loan isn’t about fear — it’s about clarity. With the education loan repayment calculator, you can see exactly how your repayments scale with your salary. It’s not a lifelong burden; it’s a manageable contribution tied to your success.
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Last updated: December 2025
Reviewed for accuracy using official UK government student finance data (2025/26).
Disclaimer
This article is for educational purposes only and should not be considered financial advice. Always check gov.uk/repaying-your-student-loan for the latest official data.
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