Repayments Active April 2026Plan 5 (£25k Threshold)40-Year Write-Off
Student Finance Plan 5 Repayment Calculator
Calculate monthly PAYE deductions for Plan 5 student loans (courses started post-August 2023) under the £25,000 repayment threshold and compare against Plan 1 & Plan 2 rules.
Plan 5 Monthly Deduction Calculator
9% deduction applied to gross earnings over £25,000/year (£2,083/month)
£
Estimated Repayment Comparison:
Plan 5 Monthly Deduction (£25k threshold)
£75
£900 / yearPlan 2 Monthly Deduction (£27.2k threshold)
£58
£693 / yearPlan 5 Reforms & Student Loan System Overview
Introduced as part of the UK government's Higher Education Reform package, Plan 5 student loans apply to all undergraduate students starting higher education courses on or after 1 August 2023. Monthly repayments begin in April 2026.
Plan 1 vs Plan 2 vs Plan 5 Comparison
| Plan Type | Course Start Dates | Repayment Threshold | Write-Off Period | Interest Rate |
|---|---|---|---|---|
| Plan 1 | Pre-2012 (England/NI) | £24,990 / year | 25 years (or age 65) | Base rate + 1% (Capped) |
| Plan 2 | 2012 to July 2023 | £27,295 / year | 30 years | RPI + up to 3% |
| Plan 5 | Post-August 2023 | £25,000 / year | 40 years | RPI Inflation Only |
Frequently Asked Questions
No. If your gross annual income falls below £25,000 (£2,083 per month), no Plan 5 deductions are made from your salary.
If you move overseas, your repayment threshold adjusts based on your host country's cost of living index. You must notify the Student Loans Company (SLC) and complete an Overseas Income Assessment form.
No. UK student loans do not appear on credit reference reports (Experian, Equifax, TransUnion) and do not affect your credit score. However, mortgage lenders consider monthly repayments as an expense when calculating debt-to-income affordability ratios.