1. Pay details
2. Repayment plans
Estimated student-loan repayment
Disclaimer: Results estimate one payroll period; your employer and the Student Loans Company determine the final deduction.
Student-loan deductions can change an NHS payslip even when basic salary stays the same. The amount depends on gross earnings in that particular pay period, the employee’s repayment plan and whether a Postgraduate Loan also applies.
This NHS Student Loan Guide explains the repayment thresholds applying from 6 April 2026 to 5 April 2027. The included estimator supports weekly and monthly pay, multiple undergraduate plans and a Postgraduate Loan.
The result covers student-loan deductions only. Income Tax, National Insurance, NHS Pension contributions and other payroll deductions are deliberately kept separate.
What the Student Loan Estimator Works Out
The estimator compares gross pay for one payroll period with the threshold for the selected loan plan. It then calculates the applicable percentage on earnings above that threshold.
It can show:
- The undergraduate threshold used
- Earnings above that threshold
- Undergraduate student-loan repayment
- Postgraduate Loan repayment
- Total deduction for the selected pay period
- Pay remaining after student-loan deductions only
- Projected annual repayment if the same deduction continued
Repayments are calculated separately for each pay period. Someone paid monthly may therefore have a deduction in a high-earning month because of overtime or a bonus, even if their annual earnings would appear lower when averaged across the year.
Employees who want to see how this deduction fits alongside tax, National Insurance and pension can compare the result with the NHS Take-Home Pay Calculator.
How to Calculate a Student-Loan Payroll Deduction
First, select whether the earnings relate to one month or one week. Enter the gross pay used for that period before Income Tax, National Insurance and other employee deductions.
Next, select the undergraduate repayment plan shown in your student-loan records or used by payroll:
- Plan 1
- Plan 2
- Plan 4
- Plan 5
A second undergraduate plan can be selected where more than one plan applies. Payroll does not normally take a separate 9% repayment for every undergraduate plan. The estimator uses the lowest threshold among the selected plans and calculates one 9% deduction.
Finally, indicate whether a Postgraduate Loan also applies. A Postgraduate Loan is calculated separately at 6% and can be deducted alongside an undergraduate-plan repayment.
The undergraduate formula is:
Gross pay for the period − applicable undergraduate threshold
If the result is greater than zero:
Earnings above threshold × 9%
The Postgraduate Loan formula is:
Gross pay for the period − Postgraduate Loan threshold
If the result is greater than zero:
Earnings above threshold × 6%
Each calculated payroll deduction is rounded down separately to the nearest whole pound. If earnings do not exceed a relevant threshold, the repayment for that plan is zero.
Worked Example Using the Tested Values
The tested calculator example uses:
- Pay frequency: Monthly
- Gross monthly pay: £3,000
- First undergraduate plan: Plan 2
- Second undergraduate plan: Plan 1
- Postgraduate Loan: Included
Because both Plan 2 and Plan 1 are selected, the estimator compares their monthly thresholds:
- Plan 2 threshold: £2,448.75
- Plan 1 threshold: £2,241.66
Plan 1 has the lower threshold, so it is used for the single 9% undergraduate repayment.
Step 1: Calculate earnings above the Plan 1 threshold
£3,000 − £2,241.66 = £758.34
Step 2: Calculate the raw undergraduate repayment
£758.34 × 9% = £68.2506
HMRC payroll calculations reduce this amount to the nearest whole pound:
Undergraduate repayment = £68.00
Step 3: Work out the earnings that exceed the Postgraduate Loan threshold
£3,000 − £1,750 = £1,250
Step 4: Calculate the Postgraduate Loan repayment
£1,250 × 6% = £75
Postgraduate Loan repayment = £75.00
Step 5: Combine the two deductions
£68 + £75 = £143
The tested result is:
- Gross monthly pay: £3,000.00
- Applicable undergraduate threshold: £2,241.66
- Earnings above undergraduate threshold: £758.34
- Undergraduate repayment: £68.00
- Postgraduate Loan repayment: £75.00
- Total monthly loan deduction: £143.00
- Pay remaining after loan deductions: £2,857.00
- Projected annual repayment: £1,716.00
The projected annual figure assumes that the same £143 deduction applies in all 12 months. It is not a forecast of the loan balance or the date on which the loan will be repaid.
Student Loan Thresholds for 2026/27
The following thresholds apply from 6 April 2026:
| Repayment plan | Weekly threshold | Monthly threshold | Repayment rate |
|---|---|---|---|
| Plan 1 | £517.30 | £2,241.66 | 9% |
| Plan 2 | £565.09 | £2,448.75 | 9% |
| Plan 4 | £649.90 | £2,816.25 | 9% |
| Plan 5 | £480.76 | £2,083.33 | 9% |
| Postgraduate Loan | £403.84 | £1,750.00 | 6% |
The repayment percentage applies only to earnings above the relevant threshold. It is not charged against the employee’s entire gross pay.
For example, a Plan 5 borrower earning £600 in one week exceeds the £480.76 threshold by £119.24:
£119.24 × 9% = £10.7316
After rounding down, the weekly deduction is £10.
The thresholds and payroll-rounding method can be checked in the official HMRC Student and Postgraduate Loan deduction tables for 2026/27.
Why the Deduction Can Change Between Payslips
Student-loan deductions are assessed using earnings in each payroll period rather than by dividing final annual income evenly.
This matters when NHS pay changes because of:
- Overtime
- Unsocial-hours enhancements
- Additional shifts
- Arrears
- Bonuses
- Allowances
- A change in contracted hours
- Beginning or ending employment partway through a pay period.
A larger payment may move earnings above the weekly or monthly threshold and create a deduction for that period. If earnings fall below the threshold in a later period, payroll will normally stop taking a repayment for that later period.
The estimator does not determine whether you are entitled to a refund of an earlier deduction. Questions about deductions already taken, the remaining loan balance or the end of repayments should be raised with the Student Loans Company or payroll as appropriate.
If the employee needs a calculator focused specifically on loan deductions and annual salary scenarios, the NHS Student Loan Repayment Calculator provides a related comparison.
Common Mistakes to Avoid
Do not enter take-home pay in the gross-pay field. The calculation uses relevant gross earnings before employee deductions.
Select the plan recorded for your loan rather than choosing the plan with the lowest threshold. The lowest-threshold rule applies only when the employee genuinely has more than one applicable undergraduate plan.
Do not add two separate 9% deductions merely because two undergraduate plans apply. One undergraduate repayment is calculated using the lowest applicable threshold.
A Postgraduate Loan is different. Its 6% deduction can be taken in addition to the undergraduate-plan repayment.
Do not round the raw repayment to the nearest pound. HMRC’s method requires the payroll deduction to be rounded down to the nearest whole pound.
The amount remaining after the calculator’s loan deduction is not complete take-home pay. Employees checking the other statutory deductions can use the NHS Tax and National Insurance Calculator.
Other pay and deduction tools are available from the NHS Salary Calculators homepage.
FAQs
Q1: What are the student-loan repayment thresholds for 2026/27?
A: The annual thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4, £25,000 for Plan 5 and £21,000 for a Postgraduate Loan. Payroll uses the corresponding threshold for the employee’s pay period.
Q2: How much is deducted above the threshold?
A: Plan 1, Plan 2, Plan 4 and Plan 5 repayments are calculated at 9% of earnings above the applicable threshold. A Postgraduate Loan uses 6%.
Q3: Can Plan 1 and Plan 2 be deducted at the same time?
A: Where more than one undergraduate plan applies, payroll normally calculates one 9% repayment using the lowest applicable threshold. It does not take 9% separately for each undergraduate plan.
Q4: Can an undergraduate loan and Postgraduate Loan be repaid together?
A: Yes. The undergraduate repayment and Postgraduate Loan repayment are calculated separately using their respective thresholds and rates, then both may be deducted from the same payslip.
Q5: Does the calculator include Income Tax and NHS Pension contributions?
A: No. It isolates student-loan and Postgraduate Loan repayments. Income Tax, National Insurance, NHS Pension contributions and other deductions are not subtracted.
Q6: Why did I have a deduction after receiving overtime or arrears?
A: Additional earnings can push gross pay above the threshold for that particular week or month. Payroll calculates the repayment separately for each pay period, so deductions can vary.
Q7: Does the outstanding loan balance change the payroll calculation?
A: The standard payroll calculation is based on earnings, repayment plan and pay-period threshold rather than the original loan amount. The Student Loans Company may instruct payroll when deductions should stop as the balance approaches repayment.
Q8: Is the projected annual repayment guaranteed?
A: No. It simply multiplies the selected weekly deduction by 52 or the monthly deduction by 12. Changes in earnings can make the actual annual total higher or lower.