Answers · UK 2025/26
What is my take-home pay on £34,000 with both a Plan 2 and a Postgraduate Loan in 2026/27?
On £34,000 in 2026/27 with both a Plan 2 undergraduate loan and a Postgraduate Loan, you pay £4,286 Income Tax, £1,714.40 National Insurance, £415.35 Plan 2 repayments and £780 Postgraduate Loan repayments, leaving £26,804.25 take-home pay -- about £2,233.69 a month.
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A £34,000 salary is a realistic starting point for a recent postgraduate still building their career, and it shows how meaningfully two simultaneous student loan repayments can affect take-home pay even at a modest income. The standard deductions come to £4,286 Income Tax (20% on the £21,430 above the £12,570 Personal Allowance) and £1,714.40 National Insurance (8% of the same £21,430), leaving £27,999.60 before student loans. The Plan 2 loan is repaid at 9% of income above £29,385, so on £34,000 the amount above the threshold is £4,615, giving a repayment of £415.35. The Postgraduate Loan is repaid separately at 6% of income above £21,000, so the amount above that threshold is £13,000, giving a repayment of £780. The two repayments total £1,195.35 for the year, leaving take-home pay of £26,804.25, around £2,233.69 a month. Notice that the Postgraduate Loan repayment (£780) is actually larger than the Plan 2 repayment (£415.35) at this salary, because its £21,000 threshold is so much lower than Plan 2's £29,385 -- at lower salaries, the Postgraduate Loan often dominates the combined repayment, even though its 6% rate is lower than Plan 2's 9%. As salary rises, the Plan 2 repayment grows faster and typically overtakes the Postgraduate Loan repayment.
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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.