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Updated October 9, 2026

UK Plan 5 Repayment Simulator

Plan 5 borrowers repay 9% of income above £25,000, with interest accruing and any balance written off after 40 years. Enter a salary path to see how much you would actually repay.

After graduation, before tax.
Tuition plus maintenance loans, e.g. £50,000 for 3 years outside London.
Plan 5 charges RPI, about 4.1% in 2026/27.
-Monthly repayment (year 1)
-Total repaid over 40 years
-Balance written off
-Years until repaid (or write-off)

YearSalaryRepaid that yearBalance

Simulation only: threshold £25,000 frozen until April 2027; future thresholds and RPI are estimates. Details at gov.uk/repaying-your-student-loan.

How Plan 5 repayment works

Plan 5 covers undergraduate and postgraduate student loans in England for courses started on or after 1 August 2023. You repay 9% of earnings above £25,000 a year (about £2,083 a month), deducted automatically through PAYE. Interest accrues at the RPI rate (about 4.1% in 2026/27). Any balance left after 40 years is written off.

What you actually pay

Repayments are based only on income, not on the amount borrowed. Examples at the current threshold:

Worked example

Borrow £50,000, graduate on £30,000 with 3% annual pay rises at 4.1% interest. Year 1 repayment is £450. Over 40 years you repay about £31,500 in total, and roughly £67,000 of remaining balance (loan plus accrued interest) is written off. High earners can clear the full balance well before 40 years.

Figures are illustrative from the simulation; your path depends on your actual salary growth.

Plan 2 vs Plan 5

Plan 2 (courses started before August 2023): threshold £29,385, 9% rate, written off after 30 years. Plan 5: lower threshold (£25,000), so monthly payments are higher, and the term is 40 years instead of 30. But interest is lower (RPI only, with no real-terms add-on), which reduces total borrowing costs for higher earners who repay in full. See our student finance guide for the full comparison.

Limitations

This is a simulation, not advice: the £25,000 threshold is frozen only until April 2027, future RPI and policy are unknown, and real repayments vary with career breaks and part-time work. Postgraduate loans use a different plan (6% above £21,000).

Planning estimate only. Results use the list prices shown and may differ from your actual bill. Terms

Frequently asked questions

How much do I repay on Plan 5?

9% of your earnings above £25,000 a year: £0 at £25,000, £37.50/month at £30,000, £75/month at £35,000, £187.50/month at £50,000. It is deducted automatically through PAYE.

When is a Plan 5 loan written off?

Any remaining balance is written off 40 years after you become liable to repay (usually the April after you leave your course). You do not need to do anything; it happens automatically.

What interest rate does Plan 5 charge?

RPI, the retail prices index measure of inflation. In 2026/27 that is about 4.1%. Interest accrues from when you receive the loan.

Is Plan 5 worse than Plan 2?

Plan 5 has a lower repayment threshold (£25,000 vs £29,385) so monthly payments are higher, and the term is 40 years instead of 30. But interest is lower (RPI only, no real-terms add-on), which reduces total borrowing costs for higher earners who repay in full.

What if I move abroad?

You still repay based on income, with thresholds set per country. You must tell the Student Loans Company before you leave the UK for more than 3 months.

Does the £25,000 threshold change?

It is frozen until April 2027, after which the government sets it for each financial year. This simulator assumes it stays flat, which may overstate repayments if the threshold rises.

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