Plan 5 Student Loan Calculator
For students starting from September 2023 onwards
How much will I repay on a Plan 5 student loan?
Plan 5 is the newest UK undergraduate loan, applying to anyone who started a course from September 2023 onwards in England. You pay back 9% of earnings above £25,000 a year. Interest is RPI only with no extra surcharge, but the repayment window stretches to 40 years, ten years longer than Plan 2. On a £35,000 salary you would repay roughly £75 a month.
🆕 What's different about Plan 5?
- ✓ Lower threshold (£25,000 vs £29,385 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
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
Plan 5 Student Loan: Common Questions
- What is a Plan 5 student loan?
- Plan 5 is the newest undergraduate loan in the UK, introduced for students starting courses in England from September 2023. It replaced Plan 2 and comes with a lower threshold, lower interest (RPI only), and a 40 year repayment window.
- Is Plan 5 better or worse than Plan 2?
- That depends on how much you earn over your career. Higher earners benefit from the lower interest rate on Plan 5. But if you are on an average salary and would have had your loan written off anyway, the lower threshold (£25,000 instead of £29,385) and longer repayment period (40 years rather than 30) could mean you pay more in total.
- When will my Plan 5 loan be written off?
- Plan 5 loans are written off 40 years after you become eligible to repay. That is ten years longer than Plan 2. The written off amount is not counted as income and you will not be taxed on it.
- How much will I repay per month on Plan 5?
- You repay 9% of earnings above £25,000 a year. On a £30,000 salary that is roughly £38 a month. At £40,000 it rises to about £113 a month. Below £25,000 you repay nothing.
- Does Plan 5 affect postgraduate loans?
- No. Postgraduate loans for Masters and PhD courses have completely separate terms, with a 6% repayment rate and a £21,000 threshold. If you hold both, they are deducted from your pay as two separate amounts.