Plan 5 Student Loan Repayment Calculator
Plan 5 is the newest UK student loan plan, applying to students who started university in England from August 2023 onwards. The rules are significantly different from Plan 2 — with a lower repayment threshold and a much longer write-off period. Understanding these differences is essential for anyone starting university from 2023.
Plan 5 has a 40-year write-off period — 10 years longer than Plan 2. Combined with the lower threshold, this means most Plan 5 graduates are expected to repay significantly more over their lifetime than Plan 2 graduates.
Enter Your Annual Salary
No repayments are due if your income is at or below £25,000
Will you repay your loan before write-off?
Adjust your starting balance and interest rate to see a projected 40-year repayment timeline.
| Year | Estimated Balance | Cumulative Repaid | Status |
|---|---|---|---|
| Year 5 | £51,033 | £2,250 | Ongoing |
| Year 10 | £58,198 | £4,500 | Ongoing |
| Year 15 | £66,708 | £6,750 | Ongoing |
| Year 20 | £76,815 | £9,000 | Ongoing |
| Year 25 | £88,819 | £11,250 | Ongoing |
| Year 30 | £103,076 | £13,500 | Ongoing |
| Year 35 | £120,008 | £15,750 | Ongoing |
| Year 40 | £140,119 | £18,000 | Written off — Year 40 |
At this salary, your loan is projected to be written off in Year 40 with an estimated £140,119 remaining. Total repaid: £18,000. This is typical for most Plan 5 graduates.
Who Is on Plan 5?
You have a Plan 5 student loan if you started an undergraduate course in England on or after 1 August 2023. Students from Wales, Scotland, and Northern Ireland are not on Plan 5 — they follow their own respective plans.
How Plan 5 Repayments Are Calculated
You repay 9% of your income above the repayment threshold. The Plan 5 threshold for 2025/26 is £25,000 per year (£2,083.33 per month).
Example: If you earn £32,000 per year, you repay 9% of (£32,000 minus £25,000) = 9% of £7,000 = £630 per year, or about £52.50 per month.
When Does a Plan 5 Loan Get Written Off?
Your Plan 5 loan is written off 40 years after the April following your graduation — ten years longer than Plan 2. A student graduating in 2026 would have their loan written off in 2067.
This extended write-off period, combined with the lower threshold, means many Plan 5 graduates are expected to repay significantly more over their lifetime than Plan 2 graduates.
Plan 5 vs Plan 2 — Key Differences
| Feature | Plan 2 | Plan 5 |
|---|---|---|
| Repayment threshold | £28,470 | £25,000 |
| Repayment rate | 9% above threshold | 9% above threshold |
| Write-off period | 30 years | 40 years |
| Interest rate | RPI + up to 3% | RPI only |
Interest on Plan 5 Loans
Plan 5 interest is set at the Retail Price Index (RPI) only — a simpler structure than Plan 2. There is no income-linked surcharge. Interest begins accumulating from the day the first payment is made to you.
Frequently Asked Questions
Is Plan 5 a worse deal than Plan 2?
For most graduates, yes — on paper. The lower threshold means repayments start sooner, and the 40-year write-off means higher earners repay more in total. However, the simpler interest structure (RPI only, no surcharge) is slightly more favourable. The Institute for Fiscal Studies has modelled that the majority of Plan 5 graduates will repay more than they borrow after accounting for interest.
Can I voluntarily overpay to avoid interest?
You can make overpayments. Whether this is financially sensible depends on your expected career earnings. If you are unlikely to repay before write-off, overpaying is rarely beneficial. If you are on a high-earning career path, it may reduce total cost. Speak to a financial adviser for personalised guidance.
My course started in September 2023 — am I definitely on Plan 5?
If you are studying in England and your course started on or after 1 August 2023, yes. Your Student Finance England award letter will confirm your plan type.