Guide · tax year 2026/27
Student loan plans explained
Plan 1, 2, 4, 5 and Postgraduate Loans compared, with repayment thresholds, rates and how repayments are taken.
Student loans in the UK are repaid as a share of your income above a threshold, not as a fixed monthly bill. Which plan you are on decides the threshold, and sometimes the rate. This guide explains the plans, how repayments are worked out, and what happens if you have more than one loan, using 2026/27 figures.
Which plan are you on?
Your plan depends on where you studied and when your course started (GOV.UK: which repayment plan you are on). In outline:
- Plan 1: courses in England or Wales that started before 1 September 2012, and all loans from Student Finance NI (Northern Ireland), undergraduate or postgraduate.
- Plan 2: courses in England that started between 1 September 2012 and 31 July 2023, and courses in Wales that started on or after 1 September 2012.
- Plan 4: loans from the Student Awards Agency Scotland.
- Plan 5: courses in England that started on or after 1 August 2023.
- Postgraduate Loan: master's and doctoral courses.
Other loans, such as Advanced Learner Loans, are covered on the same GOV.UK page.
Thresholds and rates for 2026/27
You repay a share of your income above your plan's yearly threshold (GOV.UK: what you pay). Below the threshold you repay nothing.
| Plan | Yearly threshold | You repay |
|---|---|---|
| Plan 1 | £26,900 | 9% of income above it |
| Plan 2 | £29,385 | 9% of income above it |
| Plan 4 | £33,795 | 9% of income above it |
| Plan 5 | £25,000 | 9% of income above it |
| Postgraduate Loan | £21,000 | 6% of income above it |
A worked example
On pay of £35,000, a Plan 2 borrower repays 9% of the part above £29,385: £505.35 a year, about £42.11 a month. A Plan 5 borrower on the same pay has a lower threshold, so repays more: £900.00 a year.
More than one loan
If you have more than one undergraduate plan, you do not make two repayments. You repay 9% of your income over the lowest threshold of the plans you have, as a single repayment. A Postgraduate Loan is different: its repayment is taken on top of any undergraduate repayment, at its own rate and threshold.
For example, on £35,000 with Plan 2 and a Postgraduate Loan, the total repayment is £1,345.35 a year: £505.35 for Plan 2 and £840.00 for the Postgraduate Loan.
How repayments are taken
If you are an employee, repayments are taken from your salary at the same time as tax and National Insurance, and your payslip shows how much (GOV.UK: how you repay). Your employer works out repayments on the same gross pay used for National Insurance (GOV.UK: guidance for employers).
Two things follow from that. First, a pension through salary sacrifice generally lowers your repayments, because it lowers that pay; a net pay pension does not lower that pay. Second, repayments are worked out each pay period, and employers round each deduction down to a whole pound (HMRC student loan deduction tables). A yearly calculation in pounds and pence can therefore come out a few pounds higher than your payslips add up to.
What this guide does not cover
Interest, your outstanding balance and when your loan is written off all depend on your plan and your own details. GOV.UK explains them for each plan (GOV.UK: repaying your student loan).
Repayments at different salaries
Because each plan has a different threshold, the same salary leads to different repayments. Yearly repayments for 2026/27:
| Salary | Plan 1 | Plan 2 | Plan 5 |
|---|---|---|---|
| £30,000 | £279.00 | £55.35 | £450.00 |
| £45,000 | £1,629.00 | £1,405.35 | £1,800.00 |
| £60,000 | £2,979.00 | £2,755.35 | £3,150.00 |
The gap between plans stays the same in pounds once you are above all the thresholds, because they share the same rate: the only difference is where repayments start. Plan 5 has the lowest undergraduate threshold, so Plan 5 borrowers start repaying at a lower salary and repay more at every salary above it. A pay rise adds the same share to your repayment whatever your plan, once you are over the threshold.
Checking your repayments
Your payslip shows how much has been deducted for your student loan each time you are paid. To check it, take your pay for the period, subtract your plan's threshold for that period, and work out your plan's share of what is left, rounded down to a whole pound. If you have a Postgraduate Loan as well, it is shown as a separate deduction. Our calculator works on the whole year, so its monthly figure is an average.
Common questions
I earn under the threshold. Do I repay anything?
No. If your income is below your plan's threshold, the repayment is nothing.
Do repayments depend on my whole salary?
No, only on the part above the threshold. A pay rise of a pound adds only the plan's rate of that pound to your repayment.
Where can I work out mine?
Use the student loan calculator for any mix of plans, or the salary calculator to see repayments alongside tax.
General information for the 2026/27 tax year, not financial or tax advice. We are not HMRC. Found a mistake? See our corrections policy.