Student Loan Repayments Explained: What You Repay Above the Threshold
Student loan deductions only start once earnings pass the threshold for your plan. Most plans repay 9% above that threshold, while postgraduate loans use 6%, so the plan type matters.
Use this page as a practical guide to how student loan deductions appear on payslips and why they rise with income. It is best for understanding the rule before testing scenarios in the calculator.
Your repayment plan can materially change the deduction.
Thresholds and rules can change by tax year.
Continue reading for plan-by-plan examples and explanation.
Calculator
Salary
True wage
Compare
Bonus
2026/27 uses main employee NI rate 8%.
Scotland uses different income tax bands.
Choose how you’re paid.
£
Gross pay before tax/NI.
£
Gross hourly pay.
Used for hourly + True Wage time.
Set to 46–48 if you want to exclude holidays.
%
Optional: percent of salary.
Salary sacrifice pensionIf on, pension reduces taxable pay and NI (simplified).
Assumptions▼
Standard personal allowance (simplified).
Does not include student loans, benefits-in-kind, child benefit tax charge, etc.
NI in 2023/24 changed mid-year; we model a split-year weekly estimate (illustrative).
Counts both directions. Set 0 if remote.
£
£
Lunches, parking, clothes, tools, etc.
£
Employer-paid perks that reduce your costs.
Tip: leave any field at 0 if it doesn't apply. Use the placeholders (e.g. 30, 3, £25) as examples of format.
Compare uses your current True Wage inputs for both salaries (same commute/cost assumptions).
£
Estimated using your current salary + tax year + region.
Bonus is taxed at your marginal rates (illustrative).
Bonus after tax (estimate)▼
Item
Amount
Net bonus
£—
Note: This is an illustrative estimate. Payroll can withhold differently depending on pay period and coding.
Illustrative estimate onlyResults are indicative. Check payslips or payroll information for final deductions.
Student loan repayments explained (2026/27)
UK student loan deductions sit on top of Income Tax and National Insurance for many employees. The exact repayment depends on your loan plan and earnings above the relevant threshold, so two people on the same salary can take home different amounts.
Use this page to understand repayment thresholds and how student loan deductions affect take-home pay. The current PayPrecise calculator does not yet model student loan deductions directly.
2026/27 repayment thresholds
Plan 1: repayments generally start above £26,065 a year.
Plan 2: repayments generally start above £28,470 a year.
Plan 4: repayments generally start above £32,745 a year.
Postgraduate loan: repayments generally start above £21,000 a year.
Plan 1, 2 and 4 are generally repaid at 9% above the threshold, while postgraduate loans are generally repaid at 6% above the threshold.
Thresholds and rules can change. Always check the latest HMRC and Student Loans Company guidance for your exact plan and tax year.
Why student loans matter for take-home pay
Student loan deductions can materially reduce monthly take-home pay, especially when combined with higher tax bands, pension contributions and commuting costs. That makes them important when comparing offers or deciding whether a pay rise is really worth it.
Calculator outputs remain illustrative because tax codes, salary sacrifice, pension settings, benefits, commuting patterns and local costs vary by person.