Plan 5 Student Loan Calculator
For students starting from September 2023 onwards
🆕 What's different about Plan 5?
- ✓ Lower threshold (£25,000 vs £28,470 for Plan 2) — repayments start sooner
- ✓ Lower interest (RPI only, not RPI+3%) — your balance grows slower
- ✓ Longer term (40 years vs 30 years) — more time to repay
Plan 5 Calculator
New 2023+ loans with lower threshold, RPI-only interest, and 40-year term
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£10k£150k
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Enter your loan balance to see your forecast
Using Plan 5 defaults — Threshold: £25,000/yr, Interest: 3.2%, Repayment: 9%, Write-off: 40 years
How Plan 5 Repayments Work
Threshold
£25,000/yr
Lower than Plan 2
Interest Rate
3.2%
RPI only (no +3%)
Write-off
40 years
Longer than Plan 2
- Who this applies to: Students starting an undergraduate course in England from September 2023
- Repayment rate: 9% of earnings above the threshold
- Key difference: Interest is linked to RPI only — unlike Plan 2 where it can be up to RPI + 3%
- Write-off: Remaining balance written off after 40 years — 10 years longer than Plan 2
- Example: If you earn £35,000/year, your monthly repayment would be approximately £75
Plan 5 vs Plan 2: Which is better?
The answer depends on your earnings and whether you'll pay off the loan in full:
- High earners who will pay off in full: Plan 5 is often better due to lower interest
- Average earners likely to have debt written off: Plan 2 might be better due to higher threshold (you keep more of your salary)
- The trade-off: Plan 5 has lower interest but you start repaying sooner and for longer