£40,000 student loan repayment by plan
Each plan repays 9% of income above its own threshold, except a postgraduate loan, which is 6%. The plan you are on depends on when and where you studied.
| Plan | Threshold | Repayment a month | A year | Take-home after loan |
|---|---|---|---|---|
| Plan 1 | £26,900 | £98 | £1,179 | £31,141 |
| Plan 2 | £29,385 | £80 | £955 | £31,364 |
| Plan 4 (Scotland) | £33,795 | £47 | £558 | £31,761 |
| Plan 5 | £25,000 | £113 | £1,350 | £30,970 |
| Postgraduate Loan | £21,000 | £95 | £1,140 | £31,180 |
£40,000 with an undergraduate and a postgraduate loan together
A postgraduate loan is a separate deduction, so someone repaying both pays 9% above the undergraduate threshold and 6% above £21,000, from the same salary.
| Combination | Repayment a month | A year | Take-home after both |
|---|---|---|---|
| Plan 2 + Postgraduate Loan | £175 | £2,095 | £30,224 |
| Plan 5 + Postgraduate Loan | £208 | £2,490 | £29,830 |
What a student loan takes from £40,000
The repayment comes out of pay after income tax and National Insurance, so it does not reduce either. On Plan 5, £40,000 leaves about £30,970 a year in the hand against £32,320 with no loan, a difference of £1,350. The balance is written off after 40 years on Plan 5, so on a modest salary the monthly figure, not the balance, is what matters.
Student loan on £40,000 in Scotland
A Scottish undergraduate is on Plan 4, which starts at £33,795, so the loan on £40,000 is £558 a year. Scottish income tax also differs, so take-home after the loan is about £31,696. The Scottish income tax calculator shows the tax side.
Salaries near £40,000
Work out your own figure
The tables assume the whole salary is above the threshold for the year and no change of job mid-year. Open the student loan repayment calculator to set your exact salary, plan and postgraduate loan, or see £40,000 after tax for the full take-home breakdown.