All Plans Compared
| Plan | Threshold | Annual Repayment | Take Home/Month |
|---|---|---|---|
| No student loan | — | £0 | £4,746 |
| Plan 1 | £24,990 | -£4,951 | £4,334 |
| Plan 2 | £27,295 | -£4,743 | £4,351 |
| Plan 5 | £25,000 | -£4,950 | £4,334 |
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 £80,000
Student loan repayments are calculated as 9% of income above the relevant threshold. On a salary of £80,000:
Plan 2 (started university 2012-2023): The repayment threshold is £27,295/year. You repay approximately £395/month (£4,743/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 £412/month (£4,950/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 £80,000, you are repaying steadily and may clear your loan before the write-off period. However, voluntary overpayments are generally not recommended unless you are confident you will repay in full. For most graduates, the money is better used for pension contributions (which provide tax relief) or building an emergency fund. The student loan does not affect your credit score and is written off after the relevant period.