Plan 4 Student Loan Calculator
Estimate your monthly and total repayments for Plan 4 student loans in Scotland.
About Plan 4 Loans
Plan 4 loans apply to students who started university in Scotland after September 1998. You repay 9% of income above £27,660 per year.
Your Repayment Summary
Monthly Repayment
£17.70
9% of income above threshold
Annual Repayment
£212.40
Total to be Repaid
£6,372
Over the life of the loan
Total Interest Paid
£1,372
Expected Write-Off Date
April 2048
30 years after graduation
Current Interest Rate: Lower of RPI or Base Rate +1% (currently 4.6% total)
Related Calculators
How Does the Plan 4 Student Loan Calculator Work?
This calculator helps you understand your Plan 4 student loan repayments based on your salary and graduation year. Plan 4 loans apply to students who studied in Scotland after September 1998.
Key Facts About Plan 4 Student Loans
- Repayment Threshold: You only repay when you earn above £27,660 per year (£2,305 per month)
- Repayment Rate: 9% of income above the threshold
- Interest Rate: The lower of RPI or Bank of England base rate plus 1%
- Forgiveness Period: Any remaining balance is written off 30 years after entering repayment
How Plan 4 Repayments Work
If you earn £30,000 per year, you'll repay 9% of the amount over the threshold:
- Annual income: £30,000
- Repayment threshold: £27,660
- Income above threshold: £2,340
- Repayment rate: 9%
- Annual repayment: £210.60 (approx. £17.55 per month)
Plan 4 vs Other Student Loan Plans
How does Plan 4 differ from Plan 1?
Plan 4 has a significantly higher repayment threshold than Plan 1 (£27,660 vs £22,015), meaning you need to earn more before you start repaying. Both plans use the same interest rate calculation method (lower of RPI or Base Rate +1%).
How does Plan 4 differ from Plan 2?
Plan 4 has a slightly higher threshold than Plan 2 (£27,660 vs £27,295) and a significantly lower interest rate. While Plan 2 loans can accrue interest at RPI + up to 3%, Plan 4 loans are capped at the lower of RPI or Base Rate +1%.
What if I studied in Scotland but now work elsewhere in the UK?
Your loan plan is determined by where you studied, not where you currently work. If you studied in Scotland, you'll be on Plan 4 regardless of where in the UK you later work or live.
Frequently Asked Questions
Yes, Scottish universities do not charge tuition fees to Scottish residents or EU students (pre-Brexit). However, students from other parts of the UK studying in Scotland may have to pay tuition fees. Scottish students typically only have loans for living costs, resulting in lower average loan balances.
If you have both Plan 4 and a Postgraduate loan, you'll repay 9% of your income above the Plan 4 threshold (£27,660) plus an additional 6% of your income above the Postgraduate loan threshold (£21,000). This means you could be repaying a total of 15% on some portions of your income.
Yes, the Plan 4 repayment threshold is typically adjusted annually in line with inflation. This helps ensure that the real-terms value of the threshold remains consistent over time, protecting borrowers from repayment increases due to inflation alone.
Studying in England but from Scotland?
If you're from Scotland but studied in England, you might have a different loan plan. Check our Plan 2 calculator instead.
Plan 2 Calculator