Student loan guide

Student loan repayment calculator UK

Use this page when the tax question is really about take-home, not just ANI. Student loan deductions do not reduce adjusted net income, but they do change how a pay rise, bonus, or salary-sacrifice move feels in cash terms.
Uses 2025-26 plan thresholdsBest for take-home planningUseful before salary sacrifice decisions

Who this helps

The student loan question this page answers

This is most useful for employees who already know their plan and need a cleaner take on the monthly impact before they change payroll or pension contributions.

Why student loan belongs in the tax cluster even though it does not change ANI

Student loan does not move the ANI threshold line, but it can make the real cash cost of salary sacrifice or a pay rise very different from the headline number. That is why it belongs in the same planning sequence as ANI and salary sacrifice.

What this helps you decide

Plan 1 threshold: £26,065.00

Useful if older undergraduate borrowing still sits on payroll under Plan 1.

Plan 2 threshold: £28,470.00

Still the main threshold for many higher earners comparing pay rises or salary sacrifice.

Plan 5 threshold: £25,000.00

Worth checking because the lower threshold can make marginal pay increases feel weaker.

Postgraduate threshold: £21,000.00

Postgraduate deductions stack differently again, so they should be included before relying on take-home.

Common questions

Do student loan repayments depend on the tax year?

Yes. Repayment thresholds vary by plan and tax year, so the same salary can produce a different deduction once thresholds change.

Do student loan deductions affect adjusted net income?

No. Student loan deductions change take-home pay, but they do not reduce adjusted net income. That is why they matter for affordability rather than the ANI threshold itself.

Why does student loan matter in a salary-sacrifice decision?

Because salary sacrifice can reduce the pay figure used for payroll deductions, it can change student loan repayments as well as tax and National Insurance.

Which plans matter for UK employees now?

For current UK payroll planning the main plans to check are Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate, each with its own repayment threshold and rate.