Plan 4 Student Loan Calculator
For Scottish domiciled students — highest repayment threshold in the UK
How much will I repay on a Plan 4 student loan?
Plan 4 is for Scottish domiciled students who applied through SAAS. It has the highest repayment threshold in the UK at £33,795 a year, so you keep more of your earnings before any deductions start. You pay 9% of everything above that threshold, and interest is capped at the lower of RPI or base rate plus 1%. Anything still owing after 30 years is written off.
Plan 4 Calculator
Scottish student loans with the highest threshold and capped interest
Enter your loan balance to see your forecast
Using Plan 4 defaults — Threshold: £33,795/yr, Interest: 3.2%, Repayment: 9%, Write-off: 30 years
How Plan 4 Repayments Work
🏴 Plan 4 has the highest repayment threshold of any UK student loan plan, you keep more of your earnings before repayments begin.
Repayment Threshold
£33,795/year
Highest threshold in the UK
Interest Rate
3.2%
Lower of RPI or Bank of England base rate + 1%
- Who this applies to: Students who applied for student finance through SAAS (Student Awards Agency Scotland)
- Repayment rate: 9% of earnings above the threshold
- Write-off: The remaining balance is written off after 30 years from when you became eligible to repay
- Example: If you earn £40,000/year, your monthly repayment would be approximately £47
- Scottish degrees: Typically 4 years (this calculator uses 4-year default)
How does Plan 4 compare?
| Plan | Threshold | Interest | Write-off |
|---|---|---|---|
| Plan 4 (Scotland) | £33,795 | 3.2% | 30 years |
| Plan 2 (England/Wales) | £29,385 | 6.2% | 30 years |
| Plan 5 (2023+) | £25,000 | 3.2% | 40 years |
Plan 4 Student Loan: Common Questions
- How do Plan 4 repayments work in Scotland?
- Plan 4 borrowers repay 9% of gross income above £33,795 a year. That is the highest threshold of any UK student loan plan, so you keep more of your salary before anything is deducted. Earn less than £33,795 and you pay nothing.
- How is Plan 4 different from Plan 2?
- Plan 4 has a higher threshold (£33,795 compared with £29,385 on Plan 2), lower interest capped at RPI or base rate plus 1%, and Scottish degrees normally last four years rather than three. Both plans write off after 30 years.
- When is a Plan 4 student loan written off?
- Plan 4 balances are written off 30 years after you became eligible to repay, which is usually the April after you graduate. The amount written off is not counted as taxable income.
- Do I have a Plan 4 loan if I studied in Scotland?
- Only if you were classified as a Scottish domiciled student and applied through SAAS. Students from England who attended a Scottish university are on Plan 1 or Plan 2 instead, depending on when they started.