Student loan guide
Plan 1 vs Plan 2 vs Plan 4 vs Plan 5 student loan repayment
Who this helps
The repayment-plan question this page answers
Why plan choice matters before you rely on any take-home answer
What this helps you decide
Plan 1 is still common for older borrowing
If undergraduate borrowing predates the newer English rules, Plan 1 may still be the payroll route to model.
Plan 2 remains the common higher-earning comparison
Plan 2 is still the threshold many users need when judging whether a pay rise or salary sacrifice move is worth it.
Plan 4 matters for Scottish borrowers
Scottish borrowing often sits on Plan 4, which has its own threshold and should not be assumed to behave like Plan 2.
Plan 5 can create earlier payroll drag
The lower threshold means pay rises can turn into deductions earlier than people expect, so the live take-home read matters more.
Common questions
What is the difference between Plan 1, Plan 2, Plan 4, and Plan 5?
The repayment rate is broadly similar across the main undergraduate plans, but the annual earnings threshold changes by plan and tax year. That is why the same salary can create very different payroll deductions.
Why does the plan matter when checking a pay rise?
Because the threshold decides when deductions start. A pay rise above a lower plan threshold can feel much weaker in take-home terms than the headline salary change suggests.
Should I use the live student loan calculator after reading this guide?
Yes. The live calculator is the right next step once you know the plan and want the deduction estimate in pounds rather than just a threshold comparison.
Does the same page cover postgraduate loans as well?
Postgraduate borrowing follows a separate threshold and rate, so it should be checked in its own flow rather than assumed to behave like Plan 1, 2, 4, or 5.
Related calculators
Related calculators once the right plan is clear
Student loan repayment calculator UK
Use the live calculator once you know the plan and want the actual deduction estimate in pounds.
Postgraduate loan repayment calculator UK
Use the postgraduate guide when the deduction sits on the separate postgraduate threshold rather than an undergraduate plan.
Does salary sacrifice reduce student loan repayments?
Use this when the real decision is whether a payroll pension change would reduce deductions as well as tax.
Tax and payslip planner
Use the broader tax planner when salary, PAYE, pension, and student loan all need to be carried together.
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