Student Loan Repayment Thresholds 2025/26
Student loan repayment thresholds for the 2025/26 tax year: Plan 1 is £24,990, Plan 2 is £27,295, Plan 4 is £31,395, Plan 5 is £25,000, and Postgraduate is £21,000. You repay 9% of income above your plan’s threshold (6% for Postgraduate loans). Repayments are deducted automatically through PAYE.
All plan thresholds and rates
| Plan | Threshold | Rate | Who | Write-off |
|---|---|---|---|---|
| Plan 1 | £24,990 | 9% | England/Wales loans before Sept 2012, or Northern Ireland | Age 65 |
| Plan 2 | £27,295 | 9% | England/Wales loans from Sept 2012 | 30 years after graduation |
| Plan 4 | £31,395 | 9% | Scottish undergraduate loans | 30 years after graduation |
| Plan 5 | £25,000 | 9% | England loans from Aug 2023 onwards | 40 years after graduation |
| Postgraduate | £21,000 | 6% | Postgraduate Master's or Doctoral loans | 30 years |
How repayments work
You only repay student loans on income above your plan’s threshold. For example, on Plan 2 with a £30,000 salary:
- Income above threshold: £30,000 − £27,295 = £2,705
- Annual repayment: £2,705 × 9% = £243.45
- Monthly repayment: £20.29
If you have both an undergraduate and Postgraduate loan, you repay both simultaneously. Each is calculated independently against its own threshold and rate.
Can I have two student loans?
Yes. If you have an undergraduate loan (Plan 1, 2, 4, or 5) and a Postgraduate loan, both are repaid at the same time. On a £35,000 salary with Plan 2 + Postgraduate:
- Plan 2: 9% of (£35,000 − £27,295) = £57.88/month
- Postgraduate: 6% of (£35,000 − £21,000) = £70.00/month
- Total: £127.88/month
Source: Gov.uk — Repaying your student loan. Last updated: April 2025.