Calculator
Plan 4 student loan repayment calculator (Scotland, 2026/27)
For Scottish students who started undergrad from September 1998 onwards. £33,795 threshold, the highest of any UK undergrad plan, reflecting Scottish higher-education policy. 9% rate above. Multi-plan support if you also hold Plan 1 or Postgrad.
Reviewed 29 April 2026 · 2026/27 rates verifiedAnnual student loan repayment
£558
£47/month equivalent · 9% on income above threshold
Show full breakdown
Where the maths goes
| Annual income | £40,000.00 |
|---|---|
| Undergrad thresholdLowest threshold of plan4 | £33,795.00 |
| Income above undergrad threshold | £6,205.00 |
| Undergrad repayment @ 9.0%9% on income above the threshold | £558.45 |
| Total annual repayment | £558.45 |
| Monthly equivalentHow it actually shows up on your payslip — divided by 12 | £46.54 |
Sensitivity: repayment at different incomes
Same plan set (plan4). Useful for planning raises, day-rate increases, or contract renewals — your SL repayment grows linearly above the threshold.
| Income | Annual SL | Monthly |
|---|---|---|
| £25,000 | £0 | £0 |
| £30,000 | £0 | £0 |
| £40,000 | £558 | £47 |
| £50,000 | £1,458 | £122 |
| £60,000 | £2,358 | £197 |
| £80,000 | £4,158 | £347 |
| £100,000 | £5,958 | £497 |
How Plan 4 actually works
Plan 4 is the income-contingent loan scheme for Scottish students who started university from September 1998. The mechanics: you pay 9% of every pound of income above £33,795 (the 2026/27 threshold). Repayments come off your payslip via PAYE for employees (including umbrella contractors), or via self-assessment for self-employed and Ltd directors.
Why the threshold is so high
Scottish higher-education policy. Scottish students at Scottish universities have not paid tuition fees since 2008, only maintenance loans accumulate. Smaller balances + higher threshold = lower-earning Scottish graduates effectively pay nothing toward their loans. Plan 4 has the highest threshold of any undergrad plan, and combined with the favourable interest rate (lower of RPI or BoE base + 1%), it's the most borrower- friendly UK student loan plan.
Plan 4 if you live outside Scotland
The plan stays the same. A Scottish graduate working in London is paid PAYE in England by their employer, but the employer applies the Plan 4 threshold (£33,795) and rate (9%) when computing the SL deduction. HMRC and the Student Loans Company are well-coordinated on this, you don't need to do anything special, just make sure your employer has your correct plan on their PAYE records (give them your SL1 form when you start).
Multi-plan + Postgrad
Plan 4 + Plan 1 (uncommon but possible): one 9% deduction at the lower Plan 1 threshold (£26,900). Plan 4 + Postgrad: stacks, 9% above £33,795 plus a separate 6% above £21,000. The combined maximum rate is 15% on income above the higher threshold, which for Plan 4 + Postgrad kicks in at £33,795+.
What this calculator doesn't cover
- Interest accrual: Plan 4 charges the lower of RPI or BoE base + 1%. The Student Loans Company online account is the authoritative source for current balance.
- Time-to-write-offprojections (30-year cap). MoneySavingExpert's calculator (mse.me/student-finance) handles the full balance trajectory.
- Tuition fees: Scottish students at Scottish universities don't pay tuition fees, so balances tend to be lower than Plan 2 borrowers. If you studied at an English/Welsh university as a Scottish domiciled student, your loan structure is different (English Plan 2-style fees plus Plan 4 rules), speak to SLC for clarification.
- Overseas income: Plan 4 borrowers living abroad use a country-specific threshold and pay via HMRC's overseas process. Outside this calculator's scope.
Frequently asked questions
- Am I on Plan 4?
- Plan 4 covers Scottish students who started undergraduate studies from September 1998 onwards. If you studied in Scotland before 1998 you're on Plan 1. If you studied in England, Wales, or Northern Ireland you'd be on a different plan regardless of where you currently live, the loan plan tracks where you STUDIED, not where you live now. Many Scottish graduates working in England are on Plan 4 with the £33,795 threshold even though they're paid PAYE in England.
- What's the Plan 4 threshold for 2026/27?
- £33,795, uplifted from £32,745 in 2025/26 by RPI. Plan 4 has the HIGHEST threshold of any undergrad plan, reflecting Scottish Government policy of more generous repayment terms. Plan 1, 2, and 4 thresholds are all uplifted annually; Plan 5 and Postgrad are frozen.
- Why is Plan 4 threshold so much higher than Plan 1 / Plan 2?
- Scottish higher-education policy. Scottish students at Scottish universities have not paid tuition fees since 2008 (Scottish Government policy), so their loans are smaller, Plan 4 covers maintenance only for most borrowers. The higher threshold reflects this: a £33,795 threshold means lower earners pay nothing, while higher earners still repay reasonable amounts. Effectively, Scotland's policy is 'fewer borrowers should be repaying at all'.
- What if I have Plan 4 + Plan 1 (e.g. Scottish student pre + post 1998)?
- ONE 9% deduction at the LOWER threshold (Plan 1 at £26,900). Same multi-plan rule as for any other combination, HMRC takes a single deduction; Student Loans Company allocates between plans internally. Add Plan 1 to the calculator above to see this. Note: Plan 4 + Plan 1 combination is uncommon (you'd need to have studied at uni before 1998 AND restarted after 1998) but does occur.
- What if I'm Scottish but moved to England, does my plan change?
- No. The plan you hold is determined by where (and when) you originally took out the loan. Moving from Scotland to England (or vice versa) doesn't change your plan, you keep paying via your English employer's PAYE system at the Plan 4 threshold £33,795 with the 9% rate. Conversely, an English Plan 2 graduate who moves to Scotland keeps Plan 2 with its £29,385 threshold. The loan is yours; the plan stays with the loan.
- Plan 4 + Postgrad?
- Yes, they stack. Postgrad's 6% rate is always additive on top of any undergrad plan. At £40,000 income with Plan 4 + Postgrad: Plan 4 × (40,000 − 33,795) × 9% = £558 + Postgrad × (40,000 − 21,000) × 6% = £1,140 = £1,698 total. Plan 4's high threshold means this combination is typically less burdensome than Plan 1/2 + Postgrad at the same income.
- What's Plan 4's interest rate?
- The lower of RPI or Bank of England base rate + 1%, the same favourable structure as Plan 1. Often near or below RPI, which means the real cost of the loan is low. Combined with the £33,795 threshold and 30-year write-off, Plan 4 borrowers are among the best-treated in the UK student-loan system. Most Plan 4 borrowers DO repay in full before write-off because the favourable interest keeps the balance trending down.
- When does Plan 4 get written off?
- 30 years after the April you became eligible to repay (same as Plans 2 and Postgrad). Plan 1's 25 years is shorter; Plan 5's 40 years is longer. For someone who started repaying in their early-to-mid 20s, Plan 4 typically writes off in their early 50s. Most Plan 4 borrowers reach full repayment before write-off because of the high threshold + favourable interest rate combination.
Related calculators
Plan 2 calculator
English/Welsh Sept 2012 – July 2023, threshold £29,385.
Plan 1 calculator
Pre-2012 + all NI students, threshold £26,900.
Multi-plan calculator
Combinations explained, Plan 4 + Postgrad, Plan 4 + Plan 1, etc.
Related guides
Reviewed: 29 April 2026 · See how we calculate · not financial advice.