Answers · UK 2025/26
How much is my Plan 2 student loan repayment on a £45,000 salary?
On a £45,000 salary in 2026/27, a Plan 2 student loan repayment is £1,405.35 for the year (9% of the £15,615 above the £29,385 threshold), leaving take-home pay of £34,514.25 a year after Income Tax, National Insurance and the loan repayment -- about £2,876.19 a month.
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Plan 2 student loans, used by most English and Welsh undergraduates who started their course between 2012 and 2023, are repaid at 9% of income above a 2026/27 threshold of £29,385. On a £45,000 salary, the amount above the threshold is £15,615, so the annual repayment is 9% of £15,615, which is £1,405.35, or approximately £117.11 a month, deducted automatically through PAYE. The underlying Income Tax on £45,000 is £6,486 (20% of the £32,430 taxable after the £12,570 Personal Allowance) and National Insurance is £2,594.40 (8% of the same £32,430), so total deductions across tax, National Insurance and the student loan are £10,485.75, leaving take-home pay of £34,514.25 a year, around £2,876.19 a month. If you receive a pay rise or bonus, the extra student loan repayment is calculated on top of the extra Income Tax and National Insurance -- for example, a £5,000 pay rise from £45,000 to £50,000 would add not just £1,000 of extra Income Tax and £400 of extra National Insurance but also £450 (9% of £5,000) of extra Plan 2 repayment, meaning you keep roughly 63% of a basic-rate pay rise once a Plan 2 loan is factored in, compared with around 72% for someone without a student 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.