Question 1

What are the student loan repayment thresholds for 2025/26?

Accepted Answer

For 2025/26: Plan 1 is £24,990; Plan 2 is £27,295; Plan 4 (Scotland) is £31,395; Plan 5 is £25,000; and Postgraduate Loan is £21,000. You only repay 9% (or 6% for postgrad) of earnings above your threshold. Below the threshold, you pay nothing regardless of your balance.

Question 2

What is the difference between Plan 1 and Plan 2?

Accepted Answer

Plan 1 applies to loans taken out before September 2012 in England/Wales, and to all Scottish and Northern Irish student loans. The repayment threshold is £24,990. Plan 2 is for loans from September 2012 onwards in England/Wales, with a higher threshold of £27,295. Both charge 9% on income above the threshold.

Question 3

When are student loans written off?

Accepted Answer

Plan 1: 25 years after the April you first became due to repay (or age 65 for older loans). Plan 2: 30 years. Plan 4 (Scotland): 30 years. Plan 5: 40 years. Postgraduate: 30 years. Any balance still outstanding at write-off is cancelled — you owe nothing more.

Question 4

Should I make voluntary repayments on my student loan?

Accepted Answer

Usually no. The majority of Plan 2 and Plan 5 borrowers will have their loans written off before full repayment, meaning extra voluntary payments are wasted money. Voluntary overpayments only make financial sense if you are certain you will repay the full balance before write-off — typically a high earner with a small balance. Always run the numbers first.

Question 5

Can salary sacrifice reduce my student loan repayments?

Accepted Answer

Yes. Salary sacrifice pension contributions reduce your gross pensionable pay, which reduces the amount above the repayment threshold. For example, on Plan 2 with a £40,000 salary, sacrificing £5,000 into your pension saves £450/year in student loan repayments (9% × £5,000) on top of the tax and NI savings.

Question 6

Are student loan repayments deducted before or after tax?

Accepted Answer

Student loan repayments are deducted after income tax and National Insurance have been calculated — they are not tax-deductible. Your employer deducts them via payroll (PAYE) in the same way as tax and NI, but they are calculated separately on your gross pay above the threshold.

Student Loan Repayment Calculator 2025/26

Frequently asked questions

Related calculators

Take-Home Pay

Income Tax