Does my student loan affect what I can borrow?
Not much, people often say, because a student loan isn't like other debt.
It isn't debt on your credit file, but the repayment comes out of the income a lender assesses. Both halves of that sentence matter.
That's half right. Your balance doesn't behave like a credit card or a car loan. You only repay once you earn above a threshold, and what you repay depends on your income, not on how much you owe.
But the monthly repayment is real money leaving your pay, and lenders see it on your payslip. When they work out what you can afford each month, it comes off your take-home pay, the same as any other regular outgoing.
The thresholds depend on your plan. On Plan 2, you repay 9% of income over £29,385 a year. On Plan 5, it's 9% over £25,000. So on a £35,000 salary with a Plan 2 loan, the repayment is about £505 a year, or roughly £42 a month. That's our calculation from the GOV.UK thresholds.
On its own, that rarely changes the picture much. Alongside other commitments, it's one of the things that can move you from the income-multiple figure to a lower affordability one.
Where this information comes from
Plan 2: repay 9% of income over £29,385 a year.
Source: GOV.UK, Repaying your student loan: what you pay. Checked 28 October 2026.
Plan 5: repay 9% of income over £25,000 a year.
Source: GOV.UK, Repaying your student loan: what you pay. Checked 28 October 2026.
Plan 1: £26,900. Plan 4: £33,795. Postgraduate Loan: 6% over £21,000.
Source: GOV.UK, Repaying your student loan: what you pay. Checked 28 October 2026.
General information, not advice about your circumstances. Rules and rates change; this page was last checked 28 October 2026. Spotted an error? Tell us.