All Plans Compared
| Plan | Threshold | Annual Repayment | Take Home/Month |
|---|---|---|---|
| No student loan | — | £0 | £2,993 |
| Plan 1 | £26,900 | -£1,629 | £2,858 |
| Plan 2 | £29,385 | -£1,405 | £2,876 |
| Plan 5 | £25,000 | -£1,800 | £2,843 |
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 £45,000
Student loan repayments are calculated as 9% of income above the relevant threshold. On a salary of £45,000:
Plan 2 (started university 2012-2023): The 2026/27 repayment threshold is £29,385/year. You repay approximately £117/month (£1,405/year). Plan 2 loans are written off after 30 years.
Plan 5 (started university 2023 onwards): The 2026/27 repayment threshold is £25,000/year. You repay approximately £150/month (£1,800/year). Plan 5 loans are written off after 40 years, and interest is normally charged at RPI only (no additional margin above inflation).
Should You Overpay Your Student Loan?
At £45,000, your repayments are meaningful but the loan is unlikely to be fully repaid before write-off for Plan 2 borrowers with typical balances (the average higher education borrower in England owed £47,730 on entering repayment in 2025-26, provisional, Student Loans Company). Voluntary overpayments are rarely beneficial — the money is almost always better spent on pension contributions, ISA savings, or mortgage overpayments. Student loans do not appear on credit checks and do not affect mortgage applications (though lenders factor in the reduced take home pay).
Frequently Asked Questions
What is £45,000 after tax and student loan?
On Plan 2, £45,000 gives you £2,876/month after tax, NI, and student loan. Without student loan: £2,993/month.