Which Plan Am I On?
| Plan | When You Started | Threshold | Rate | Written Off |
|---|---|---|---|---|
| Plan 1 | Before Sept 2012 (England/Wales) or Scotland/NI | £24,990 | 9% | 25 years |
| Plan 2 | Sept 2012 – July 2023 (England/Wales) | £27,295 | 9% | 30 years |
| Plan 4 | Sept 1998+ (Scotland) | £31,395 | 9% | 30 years |
| Plan 5 | Aug 2023 onwards | £25,000 | 9% | 40 years |
| Postgraduate | Any postgrad loan | £21,000 | 6% | 30 years |
How Repayments Work
You repay 9% of everything you earn above the threshold (6% for postgraduate loans). If you earn under the threshold, you pay nothing. Repayments are taken from your payslip like tax — you don't need to do anything.
Example: Plan 2, £35,000 salary
Earnings above threshold: £35,000 - £27,295 = £7,705
Annual repayment: £7,705 × 9% = £693
Monthly deduction: £58
Should I Overpay My Student Loan?
For most Plan 2 graduates, the answer is no. The Student Loans Company estimates that only about 25% of Plan 2 borrowers will repay in full before the 30-year write-off. If you're not going to repay it all anyway, overpaying is just throwing money away.
Overpaying may make sense if you have a small balance remaining near the write-off date, or you're on Plan 1 (lower balances, shorter write-off) and will clearly repay in full.
Interest Rates
Plan 2 interest is RPI + up to 3% while studying, then RPI + 0-3% based on income after graduation. Plan 5 has a fixed RPI rate. Plan 1 and Plan 4 charge the lower of RPI or the Bank of England base rate + 1%.
What Happens If I Go Self-Employed?
If you're self-employed, student loan repayments are calculated through your Self Assessment tax return. The same thresholds and rates apply — 9% of profits above the threshold.
Calculate your exact student loan repayment
Student loan calculator →