Estimate your annual and monthly student loan repayments for the 2026/27 tax year. Repayments are income-contingent — a percentage of income above your plan's threshold.
UK student loan repayment is income-contingent: you repay a percentage of income above a threshold, not a fixed amount based on what you borrowed. Plans 1, 2, 4 and 5 take 9% of income over their threshold; the Postgraduate Loan takes 6%. Earn below the threshold and you repay nothing that period, whatever your balance — it behaves more like a graduate tax.
Which plan you are on depends on when and where you studied. For employees, repayments are taken automatically through PAYE once a pay packet exceeds the monthly equivalent of the threshold, so a one-off bonus month can trigger a deduction. Any remaining balance is written off after a set period (25–40 years depending on plan).