Answers · UK 2025/26
How much is my Plan 1 student loan repayment on a £35,000 salary?
On a £35,000 salary in 2026/27, a Plan 1 student loan repayment is £729 for the year (9% of the £8,100 above the £26,900 threshold), leaving take-home pay of £27,990.60 a year after Income Tax, National Insurance and the loan repayment -- about £2,332.55 a month.
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Plan 1 student loans are repaid at 9% of income above a 2026/27 threshold of £26,900. On a £35,000 salary, the amount above the threshold is £8,100, so the annual repayment is 9% of £8,100, which is £729, or £60.75 a month, deducted automatically through PAYE. The underlying Income Tax on £35,000 is £4,486 (20% of the £22,430 taxable after the £12,570 Personal Allowance) and National Insurance is £1,794.40 (8% of the same £22,430), so total deductions are £7,009.40, leaving take-home pay of £27,990.60 a year, around £2,332.55 a month. Plan 1 borrowers who started their course before September 2012 also benefit from a lower interest rate than Plan 2 or Plan 5 borrowers, typically pegged to the lower of RPI or the Bank of England base rate plus 1%, which can meaningfully reduce the total amount repaid over the life of the loan.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.