Student Finance Plan 2£27,295 Threshold9% Deduction Rate
Student Loan Plan 2 Repayment Calculator 2026
Calculate your monthly Student Loan Plan 2 repayments under the £27,295 salary threshold (9% repayment rate) for pre-2023 university graduates.
Plan 2 Repayment Estimator
Compute monthly PAYE salary deduction above £27,295 threshold
£
Plan 2 Repayment Result:
Monthly Salary Deduction
£80/mo
Deducted via PAYEAnnual Repayment Total
£963/yr
9% Over £27,295Plan 2 Monthly Repayment Breakdown by Salary
Monthly repayments are deducted via PAYE alongside Income Tax and National Insurance.
| Gross Annual Salary | Income Over £27,295 | Monthly Repayment | Annual Repayment |
|---|---|---|---|
| £27,295 or under | £0 | £0 / mo | £0 / yr |
| £30,000 | £2,705 | £20 / mo | £243 / yr |
| £40,000 | £12,705 | £95 / mo | £1,143 / yr |
| £50,000 | £22,705 | £170 / mo | £2,043 / yr |
| £60,000 | £32,705 | £245 / mo | £2,943 / yr |
UK Student Loan Plans Comparison (2025/2026)
Plan 2 (2012 – 2023)
Threshold: £27,295 | Rate: 9% | Write-off: 30 Years
Plan 5 (2023 Onwards)
Threshold: £25,000 | Rate: 9% | Write-off: 40 Years
Frequently Asked Questions (FAQs)
The Plan 2 student loan repayment threshold is £27,295 per year (£2,274 per month or £524 per week). You pay 9% of your gross income above this threshold.
Plan 2 student loans (for undergraduate courses started between 1 September 2012 and 31 July 2023 in England) are written off 30 years after the April you were first eligible to repay.
Interest on Plan 2 ranges from RPI (Retail Price Index) for earnings under £27,295 up to RPI + 3% for earnings over £49,130.
No. Student loans do not appear on UK credit reports and do not directly affect your credit score, though mortgage lenders consider monthly repayments as part of affordability checks.
If you are self-employed, student loan repayments are calculated and collected automatically through your annual HMRC Self-Assessment tax return.