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 applies to eligible new undergraduate borrowers in England from August 2023. You repay 9% of earnings above £25,000 a year. Interest is linked to RPI. The current write-off period is 40 years. On a £35,000 salary, the annual formula estimates a monthly repayment of about £75.
🆕 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 write-off period (40 years vs 30 years on Plan 2)
Plan 5 Calculator
New 2023+ loans with lower threshold, RPI only interest, and 40 year term
Enter your loan balance to compare a repayment scenario
Using Plan 5 defaults — annual threshold: £25,000/yr, Interest: 4.1%, Repayment: 9%, standard term: 40 years. The published interest rate is for 1 September 2026 to 31 August 2027 only.
Check your payslip against the pay-period thresholds. If you think a deduction was wrong, read the refund rules and contact SLC if you need an account-specific check.
How Plan 5 Repayments Work
Threshold
£25,000/yr
Lower than Plan 2
Interest Rate
4.1%
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 under current terms
- Example: If you earn £35,000 a 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 applies to eligible new undergraduate borrowers in England from August 2023. It has an RPI-linked interest formula, a £25,000 annual threshold for the current tax year, and a 40-year write-off period under current terms.
- Is Plan 5 better or worse than Plan 2?
- The total amount repaid depends on the plan terms, balance, and your income over time. Plan 5 has a lower threshold (£25,000 compared with £29,385 for Plan 2) and a longer write-off period (40 years compared with 30). Compare scenarios for the same income assumptions.
- When will my Plan 5 loan be written off?
- Any remaining Plan 5 balance is written off after 40 years under current terms. Confirm when the period starts for your loan in your terms or SLC account.
- How much will I repay per month on Plan 5?
- You repay 9% of earnings above £25,000 a year. If you earn £30,000 or £40,000 a year, the estimated monthly repayments are about £38 or £113. Actual PAYE deductions use pay-period thresholds. Below the applicable period threshold, no Plan 5 deduction is due.
- Does Plan 5 affect postgraduate loans?
- Postgraduate Loans have separate terms, with a 6% repayment rate above £21,000. If you hold both, the deductions are calculated separately and collected together through payroll when due.