Student Loan Repayment Calculator (Plan 2/Plan 5) 2025/26
Calculate monthly student loan repayments and total amount repaid under Plan 2 (started degree 2012-2023) and Plan 5 (started from September 2023) for 2025/26. Includes write-off projections and comparison of total lifetime repayment.
Key Inputs
- Repayment plan: Plan 1 (pre-2012), Plan 2 (2012-August 2023), Plan 5 (September 2023+)
- Current gross annual salary (£)
- Expected annual salary growth rate (%)
- Outstanding loan balance (£)
- Current interest rate (Plan 2: RPI+3% while studying, RPI thereafter; Plan 5: RPI only)
What You'll Get
- Monthly repayment at current salary (£)
- Annual repayment (£)
- Projected years to write-off (Plan 2: 30 years; Plan 5: 40 years)
- Total amount repaid before write-off (£)
- Estimated balance at write-off (£) — most borrowers do not repay in full
- Comparison: Plan 2 vs Plan 5 total repayment at same salary
Important Notes — 2025/26 Rates & Caveats
Plan 2: 9% on earnings above £27,295/year; written off after 30 years from the April you first became eligible to repay; interest: RPI + up to 3% while studying and earning over threshold, falling to RPI at £27,295. Plan 5 (new from 2023): 9% on earnings above £25,000; written off after 40 years; interest: RPI only (no earnings-linked surcharge). Plan 1: 9% above £22,015; written off at age 65. Research shows the majority of Plan 2 borrowers will not repay in full before write-off — for most graduates, student loans function more like a graduate tax than a conventional debt.
Frequently Asked Questions
What is the student loan repayment threshold for Plan 2?
£27,295 per year for 2025/26 — you repay 9% of earnings above this threshold. Monthly, this means repayments begin once salary exceeds £2,274/month gross. Below the threshold no repayment is required regardless of outstanding balance. The threshold is reviewed annually but is frozen until at least 2025 under the current government policy. Plan 5 threshold is £25,000/year from September 2023 starters.
What is the difference between Plan 2 and Plan 5 student loans?
Plan 2 applies to students who started their undergraduate course between September 2012 and August 2023 — repayment threshold £27,295, write-off after 30 years, interest rate RPI + up to 3%. Plan 5 applies to students starting from September 2023 onwards — repayment threshold £25,000 (lower), write-off after 40 years (longer), interest rate RPI only (no earnings-linked surcharge). Plan 5 borrowers repay more over their lifetime than Plan 2 at equivalent salaries, primarily due to the longer write-off period.
When are student loans written off?
Plan 2: 30 years after the April following graduation (typically age 52-53 for most graduates). Plan 5: 40 years after the April following graduation (typically age 62-63). Plan 1: when the borrower reaches age 65 or 25 years after repayment started, whichever is earlier. Postgraduate loans: 30 years. Most Plan 2 borrowers will have a significant balance written off — analysis suggests only graduates earning in the top 25% will repay in full. Write-off amounts are not taxable income.
Related Calculators
Use the interactive Student Loan Repayment Calculator (Plan 2/Plan 5)
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