UK student loan repayments are deducted automatically through PAYE — you pay 9% of earnings above your plan's threshold, collected alongside tax and NI. Which plan you're on depends on when and where you studied. In 2026/27 there are five plans plus a Postgraduate Loan.
2026/27 Repayment Thresholds at a Glance
How the Deduction Is Calculated
You pay 9% (or 6% for Postgraduate) on the amount above the threshold — not on your full salary. Example for Plan 2 at £35,000:
- £35,000 − £27,295 = £7,705 above threshold
- £7,705 × 9% = £693/year (£58/month)
Should You Overpay?
For most Plan 2 borrowers, voluntary overpayments are rarely beneficial. The loan is written off after 40 years regardless of balance, and if you're unlikely to repay it in full, overpaying is money lost. Plan 1 borrowers may be different — lower interest and a shorter write-off period sometimes make overpayment worthwhile. Always check your current balance and interest rate before deciding.
Which plan am I on? Check your original loan paperwork, log into the Student Loans Company portal at gov.uk/repaying-your-student-loan, or look at your payslip — your plan number appears on the student loan deduction line.
Calculate your take-home pay
Use PayKeep's free calculator for your exact figures — pension, student loan, tax code and all.
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