ScenarioUpdated 2025

Loans on £25k salary

Example monthly repayments at a gross salary of £25,000 — quick comparisons across plans using the current thresholds and rates.

Salary

£25,000

Plans with £0

5

No monthly repayments

Highest monthly

£20

Estimated monthly repayments at £25k

PlanThresholdRateEstimated monthly
Plan 1£26,0659%£0
Plan 2£28,4709%£0
Plan 3£30,0009%£0
Plan 4£32,7459%£0
Plan 5£25,0009%£0
Postgraduate£21,0006%£20

£25k salary: what to expect

A £25,000 salary is typical for early-career graduates. At this income you may see little or no student loan repayments depending on your plan.

What this means for most borrowers

Several plans (Plan 1, Plan 4) generally have thresholds above £25k meaning zero repayments. Others may have small monthly deductions. This keeps lower earners protected by the threshold structure.

Who pays nothing at £25k?

If your plan's threshold is above £25,000, you pay nothing on that salary.

Plan 1

Threshold £26,065

Plan 4

Threshold £32,745

If you're on these plans, your entire £25k salary is yours to keep (minus tax & National Insurance).

Plans with minimal payments at £25k

💰Plan 5

£0/month

Exactly at threshold

📊Plan 2

£0/month

Just below or at threshold depending on pension & benefits

🎓Postgraduate

£20/month

Lower threshold but 6% rate — small monthly deductions

Balance growth vs repayments

At £25k, interest often outpaces repayments — especially for higher-interest plans.

💡Example: Interest vs payment

With a £45,000 Plan 2 loan at 6.2% interest, you accrue ≈£232/month in interest but may only repay a small amount per month — meaning your balance grows despite paying.

This is normal; many borrowers will see balances written off after the plan-specific write-off period.

Combined loans (UG + PG)

If you have both UG and PG loans, repayments are calculated separately and add together each month.

📝 Example: Plan 5 + Postgraduate

Plan 5 UG: £0/month (at threshold)

Postgraduate: £20/month

Total: £20/month (£240/year)

What happens if your salary increases?

Repayments increase with salary. Here's a quick look at moving from £25k→£30k:

PlanAt £25kAt £30kIncrease
Plan 2£0/mo£11/mo+£11/mo
Plan 4£0/mo£0/moNo change
Plan 5£0/mo£38/mo+£38/mo

In short: increase in salary means more deducted, but interest rates and thresholds determine whether the balance actually falls.

Notes

Note: These are simplified calculations. Pension contributions, tax codes, and multiple employments affect your repayments. For precise figures, use our calculators.

Get precise figures

Use our calculators to model exact monthly repayments and combined loans.

Useful guides