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Students & Graduates · 2025/26 threshold

Plan 5 Student Loan Calculator

Plan 5 is for English undergrads who started in or after August 2023 — lower threshold (£25,000) but a much longer 40-year write-off window.

Your salary

£

Plan 5 threshold: £25,000 (2025/26). Rate 9% on the excess.

Monthly repayment

£75

£900 per year

Calculation

  • Annual salary
    £35,000
  • Plan 5 threshold
    −£25,000
  • Income above threshold
    £10,000
  • Annual repayment (9%)
    £900

How we calculated your result

Repayment = 9% × (annual salary − £25,000). Lower threshold than Plan 2 means more borrowers will pay sooner — and for longer.

Official UK rules in simple English

  • Threshold £25,000 (frozen until at least April 2027).
  • Interest capped at RPI (no income-tier sliding scale).
  • 40-year write-off instead of 30 — much more debt will be repaid in full.
  • Same 9% rate as other undergrad plans.

Common pitfalls to watch out for

  • ⚠ Most Plan 5 borrowers will repay in full

    The combination of a low threshold, 9% rate and 40-year window means high earners may overpay significantly. IFS estimates 65%+ will repay fully.

  • ⚠ Overpayments may now be worthwhile

    Unlike Plan 2, Plan 5’s longer window changes the math — high earners can save serious interest by paying down early.

Frequently asked questions

Why is the threshold so much lower than Plan 2?
Policy change in 2022 to recover more loan value. Plan 5 borrowers pay more, sooner.
Can I still defer to age 67?
No — Plan 5 has no age-based write-off, only the 40-year clock.

Estimate based on 2025/26 thresholds.

Related calculators

More tools in Students & Graduates.