Plan 1 Student Loan Calculator

Complete Guide to Plan 1 Student Loans

Plan 1 is the original income-contingent student loan introduced for English, Welsh, and Northern Irish students. If you started your undergraduate degree in England or Wales before 1 September 2012, or in Northern Ireland on or after 1 September 1998, your student loan falls under Plan 1. This plan was the standard before the significant reforms that introduced Plan 2 in 2012, when tuition fees in England and Wales tripled to up to £9,250 per year.

Because Plan 1 covers the era when tuition fees were capped at £1,000 per year (1998–2006) and later at £3,375 per year (2006–2012), typical Plan 1 loan balances are considerably lower than those of newer graduates. Many Plan 1 borrowers graduated with total debts of £10,000 to £25,000, compared to £40,000 to £60,000+ for Plan 2 borrowers. This smaller balance, combined with a lower interest rate and shorter write-off period, means the repayment dynamics are fundamentally different from those of later plans.

Who Has a Plan 1 Loan?

You have a Plan 1 loan if you fall into any of these categories:

• English or Welsh students who started their undergraduate course before 1 September 2012
• Northern Irish students who started their course on or after 1 September 1998
• EU students who studied in England or Wales and started before September 2012
• Students who took out an Advanced Learner Loan in England before 1 August 2023

If you are unsure which plan you are on, you can check your most recent loan statement from the Student Loans Company (SLC), log in to your online repayment account, or check your payslip — it will show which plan type your employer is deducting under. Our which plan am I on? guide can also help.

Key Plan 1 Facts for 2026/27

• Annual repayment threshold: £26,900 per year (£2,241.67 per month, or £517 per week)
• Repayment rate: 9% of your gross income above the threshold
• Interest rate: 3.2% — set as the lower of RPI inflation or Bank of England base rate + 1%
• Write-off period: 25 years after the April you were first due to repay
• Collection method: PAYE (automatic through your employer) or Self Assessment if self-employed

How Plan 1 Interest Rates Work

The Plan 1 interest rate is reviewed and updated each September. It is set at whichever is lower: the prevailing rate of RPI (Retail Prices Index) inflation, or the Bank of England base rate plus 1 percentage point. For the 2026/27 academic year, this rate is 3.2%.

This formula generally results in a lower interest rate than what Plan 2 borrowers pay, because Plan 2 can charge up to RPI + 3% for higher earners. The practical consequence is that Plan 1 balances grow more slowly, and a higher proportion of Plan 1 borrowers will actually clear their debt within the 25-year write-off window.

Historically, Plan 1 interest rates have been as low as 0.9% (when the base rate was near zero and inflation was low) and as high as 6.3% during periods of high inflation. You can find the full history of Plan 1 rates in our interest rates explained guide.

How Plan 1 Repayments Are Calculated

Repayments work in exactly the same way as other UK student loan plans: you pay 9% of your gross income above the annual threshold. For Plan 1, that threshold is £26,900 in 2026/27. If you earn less than £26,900, you pay nothing at all. There are no minimum payments and no penalties for earning below the threshold.

Repayment Examples at Different Salaries

Here are some worked examples to show how much you would repay at various salary levels:

Will You Repay Your Plan 1 Loan in Full?

Unlike Plan 2, where the majority of borrowers will have their loan written off, many Plan 1 borrowers will repay in full. This is because of the combination of lower original balances, a lower interest rate, and the fact that many Plan 1 borrowers are now well into their careers with established salaries. If you borrowed £15,000 for a three-year course with fees of £3,000 per year plus modest maintenance, and you are now earning £35,000+, the calculator above will likely show that you clear the debt well before the 25-year mark.

However, if you had a particularly large Plan 1 balance (perhaps from a longer course or postgraduate study), or if your income has remained relatively modest, there is still a chance your remaining balance will be written off. Use the calculator above to model your exact situation — it will tell you whether you are projected to pay in full or have some written off.

Plan 1 Write-Off: 25 Years

Plan 1 loans are written off 25 years after the April you were first due to repay. For most borrowers, this means 25 years after the April following graduation. For example, if you graduated in July 2005, your first due date was April 2006, and your loan would be written off in April 2031. The write-off is automatic, tax-free, and you do not need to apply for it. Any remaining balance — whether it is £50 or £50,000 — is simply cancelled.

For a deeper look at write-off rules for all plans, see our guide on when your student loan is written off.

Should Plan 1 Borrowers Overpay?

Because many Plan 1 borrowers will repay in full before write-off, overpaying can potentially save money on interest. However, before making voluntary overpayments, you should consider a few factors:

• Will you actually repay in full? Use the calculator above to check. If your loan would be written off, overpaying is a waste of money — you are paying towards a debt that would be cancelled for free.
• Could the money earn more elsewhere? If your Plan 1 interest rate is 3.2% but you could earn 5% in a savings account or ISA, your money works harder by staying invested.
• Do you have higher-interest debts? Credit cards, overdrafts, and car finance typically charge far higher interest rates. Always clear these first.
• Do you have an emergency fund? Financial advisers generally recommend having 3–6 months of expenses saved before directing extra money towards any debt repayment.

Use our early repayment calculator to model the exact impact of overpayments on your Plan 1 loan and see whether it genuinely saves you money. For general advice, our should I repay early? guide covers this topic in depth.

Plan 1 and Self-Employment

If you are self-employed, your student loan repayments are calculated as part of your Self Assessment tax return. HMRC will add student loan repayments to your tax bill based on your net profits above the Plan 1 threshold. Unlike PAYE, where deductions happen monthly, Self Assessment repayments are collected annually (or in two payments on account). This means self-employed borrowers may face a larger lump-sum payment once a year.

Plan 1 vs Other Plans

Compared to newer plans, Plan 1 has a shorter write-off period (25 years vs 30–40 for others), a moderate threshold (£26,900 — lower than Plan 4's £33,795 but higher than Plan 5's £25,000), and a consistently low interest rate. If you want to see how Plan 1 stacks up against Plan 2, 4, or 5 in terms of total cost, use our plan comparison tool.

Reducing Plan 1 Repayments with Salary Sacrifice

If your employer offers salary sacrifice pension contributions, you can reduce your gross pay and therefore reduce your student loan deductions. For Plan 1 borrowers who will repay in full anyway, this might not be beneficial (you pay less now but pay longer). But for borrowers whose loan would be written off, salary sacrifice is an excellent strategy — you build pension savings while paying less towards a debt that gets cancelled. Read our salary sacrifice guide for the full details.

Related calculators and guides: How repayments work · Interest rates explained · Compare with other plans · Early repayment calculator · Plan 2 calculator