Can I repay both an undergraduate and a postgraduate loan simultaneously?

Yes. Postgraduate loans are repaid concurrently at 6% of earnings over £21,000, in addition to your 9% undergraduate plan repayment.

Does student loan debt affect my credit score in the UK?

No, UK student loans do not appear on credit reports and do not directly hurt credit scores, although lenders factor monthly deductions into affordability assessments.

When are student loans written off in the UK?

Plan 1 loans are written off after 25 years or at age 65, Plan 2 loans after 30 years, and Plan 5 loans after 40 years from the April after graduation.

What is the Plan 4 repayment threshold for Scottish students?

Plan 4 for Scottish students has a repayment threshold of £33,795 with a 9% repayment rate.

United Kingdom•Tax Year 2026-27

Student Loan Repayment Calculator

Calculate monthly UK student loan repayment deductions for Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate loans.

Schedule 2026-27

Input Parameters

Annual Gross Income£45,000.00

Estimated Tax Liability

£0.00

Effective Rate3.54%

Monthly Net£0.00

Total Tax£0.00

Monthly Tax£0.00

Weekly Net£0.00

Step-by-Step Practical Calculations

Worked Calculation Examples (United Kingdom)

Real-world numerical scenarios showing how statutory tax brackets, deductions, and exemptions are applied step-by-step.

Example 1£38,000.00 / year

Plan 2 Student Loan on £38,000 Salary

Graduate on Plan 2 (£29,385 threshold in 2026-27) earning £38,000 gross.

Calculation Breakdown

Gross Annual Salary£38,000.00

Plan 2 Repayment Threshold£29,385.00

Income Exceeding Threshold£8,615.00

Repayment Rate9.0%

Annual Student Loan Repayment£775.35

Monthly Payroll Deduction£64.61 / mo

Key Takeaway: Student loan deductions only apply to the slice of income above the statutory threshold, not your full salary.

Researched by CalcWorldwide Tax Team

Updated: August 2026 (2026-27)

Statutory Rates Verified

Official Statutory Sourcing (2026-27)

Audited against published schedules under the UK Finance Act 2025/2026 & National Minimum Wage Regulations from HM Revenue & Customs (HMRC).

gov.uk/browse/tax

Calculation Methodology & Legislation

How Your Calculation Works (United Kingdom • 2026-27)

This calculation tool operates strictly in accordance with statutory tax brackets and financial schedules published by HM Revenue & Customs (HMRC) for the 2026-27 fiscal tax year (UK Finance Act 2025/2026 & National Minimum Wage Regulations).

Student loan repayments are automatically deducted by HMRC at 9% (or 6% for Postgraduate Loans) on earnings above statutory thresholds.

Core Mathematical FormulaStatutory 2026-27

Net Take-Home = Gross Salary − Income Tax (20%/40%/45%) − National Insurance (8%/2%) − Pension Contribution − Student Loan Repayment

Statutory Allowances & Deductions

Basic Personal Allowance / Exemption

Standard £12,570 Personal Allowance provides 100% tax-free income on foundational earnings before the 20% basic rate applies.

Reliefs & Allowable Deductions

Workplace pension salary sacrifice reduces both Income Tax (20%/40%) and Class 1 National Insurance (8%), maximizing take-home efficiency.

Frequently Asked Questions (United Kingdom)

Under Plan 2, you repay 9% of your gross earnings exceeding £29,385 per year (£2,448.75 per month). If you earn £38,000, your repayment is £775.35 per year (£64.61/month).

More United Kingdom Calculators

salary

Student Loan Repayment Calculator

Worked Calculation Examples (United Kingdom)

Plan 2 Student Loan on £38,000 Salary

How Your Calculation Works (United Kingdom • 2026-27)

Statutory Allowances & Deductions

Frequently Asked Questions (United Kingdom)

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