All Plans Compared
| Plan | Threshold | Annual Repayment | Take Home/Month |
|---|---|---|---|
| No student loan | — | £0 | £1,973 |
| Plan 1 | £24,990 | -£271 | £1,951 |
| Plan 2 | £27,295 | -£63 | £1,968 |
| Plan 5 | £25,000 | -£270 | £1,951 |
Student loan repayments are 9% of income above the threshold. They're deducted automatically through PAYE. Plan 2 loans are written off after 30 years.
Understanding Student Loan Repayments on £28,000
Student loan repayments are calculated as 9% of income above the relevant threshold. On a salary of £28,000:
Plan 2 (started university 2012-2023): The repayment threshold is £27,295/year. You repay approximately £5/month (£63/year). Plan 2 loans are written off after 30 years.
Plan 5 (started university 2023 onwards): The repayment threshold is £25,000/year. You repay approximately £22/month (£270/year). Plan 5 loans are written off after 40 years, and the interest rate is capped at RPI only (no additional margin above inflation).
Should You Overpay Your Student Loan?
At £28,000, your annual repayments are modest. It is very unlikely you will repay the full loan before write-off. Voluntary overpayments are strongly discouraged at this salary level — you would essentially be paying off a debt that would otherwise be forgiven. Focus instead on building savings, contributing to your pension, and managing day-to-day finances. See £28,000 salary after tax for your full take home breakdown.