Student Loan Repayments on an NHS Salary: Plan 1, 2, 4, 5 and Postgraduate
Your plan type decides when repayments start and how much you pay. Here is what each plan takes from an NHS salary.
Updated · 4 min read
Try it with your own numbersNHS Student Loan Repayment CalculatorMany nurses, midwives, paramedics and allied health professionals start their careers with a student loan. Repayments come straight out of your pay through PAYE, so you do not need to arrange anything, but the amount depends heavily on which plan you are on.
The plans and thresholds for 2026/27
| Plan | Who it usually covers | Threshold a year | Rate |
|---|---|---|---|
| Plan 1 | Started in England or Wales before 2012, or Northern Ireland | £26,900 | 9% |
| Plan 2 | Started in England or Wales from 2012 to July 2023 | £29,385 | 9% |
| Plan 4 | Scotland | £33,795 | 9% |
| Plan 5 | Started in England from August 2023 | £25,000 | 9% |
| Postgraduate | Master's or doctoral loans | £21,000 | 6% |
You only repay on the part of your income above the threshold.
What it means on Band 5
For a full-time Band 5 on the entry point of £32,073, monthly repayments would be:
- Plan 1: £38.80
- Plan 2: £20.16
- Plan 5: £53.05
- Postgraduate: £55.37
Notice how much the threshold matters. A newly qualified nurse on Plan 5 repays more than twice as much as one on Plan 2 on exactly the same salary.
Having two loans
If you have an undergraduate loan and a postgraduate loan, both are repaid at the same time. A Band 5 with Plan 2 and a postgraduate loan would repay £20.16 plus £55.37, which is £75.53 a month.
Your pension does not reduce repayments
Student loan repayments are based on your earnings before your NHS Pension contribution comes off. So the pension reduces your income tax but not your student loan. Salary sacrifice schemes are different: they reduce the pay used for student loan repayments too. The salary sacrifice guide explains the effect.
Months with extra pay
Repayments are worked out on each pay period, not on your yearly salary. In a month with lots of overtime or back pay, more of your pay is above the monthly threshold, so the repayment for that month is higher. It does not even out at the end of the year in the way income tax can.
Should you overpay?
For Plan 2 and Plan 5, many people will never repay the full balance before it is written off, 30 or 40 years after you become eligible to repay. Paying extra can be money you never needed to spend. For Plan 1 and postgraduate loans, which have lower balances and shorter terms, overpaying can make more sense. It depends on your balance, your expected career and your interest rate, so it is worth thinking through before making voluntary payments.
Not sure which plan you are on?
Your plan is shown on your Student Loans Company online account, and the plan type appears on your payslip next to the deduction.
Worked example: two NHS staff, same pay
Two Band 5 nurses both earn £32,073. One studied in England from 2016 and is on Plan 2. The other started university in England in 2023 and is on Plan 5.
- Plan 2: 9% of (£32,073 minus £29,385) = £241.92 a year, about £20.16 a month.
- Plan 5: 9% of (£32,073 minus £25,000) = £636.57 a year, about £53.05 a month.
The difference of about £33 a month comes entirely from the threshold. As pay rises, both will repay more, but the Plan 5 nurse will always repay more on the same salary.
Common questions
What if I move abroad? Repayments continue, but you arrange them directly with the Student Loans Company based on your overseas income.
Do I repay during maternity leave? Repayments are based on what you are paid each month, so they fall or stop when your pay drops below the threshold.
Can I get a refund? If you earned below the threshold for the year but repayments were taken, or you repaid more than you owed, you can ask the Student Loans Company for a refund.
Does the NHS ever pay off student loans? There is no general NHS scheme to repay student loans in England, although some roles and regions have offered incentives.
Common mistakes to avoid
- Not checking that the right plan type is on your payslip, which can lead to under or over payment.
- Paying extra on Plan 2 or Plan 5 without considering whether the balance would be written off anyway.
Work out your repayments
The student loan calculator shows monthly and yearly repayments for any band, pay point and hours, including undergraduate and postgraduate loans together. To see the full picture alongside tax and pension, use the take-home pay calculator.
This guide explains the general rules for staff in England using 2026/27 figures. It is not financial advice. Your employer, payslip or NHS Pensions statement has the final word on your own pay.