Student Loan Repayment Thresholds 2026/27
Student loan repayment thresholds for the 2026/27 tax year: Plan 1 is £26,900, Plan 2 is £29,385, Plan 4 is £33,795, 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 | £26,900 | 9% | England/Wales loans before Sept 2012, or Northern Ireland | Depends on first-loan date |
| Plan 2 | £29,385 | 9% | England/Wales loans from Sept 2012 | Usually 30 years after first repayment due |
| Plan 4 | £33,795 | 9% | Scottish undergraduate loans | Depends on first-loan date |
| 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 − £29,385 = £615
- Annual repayment: £615 × 9% = £55.35
- Monthly equivalent: about £4.61
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 − £29,385) = £42.11/month
- Postgraduate: 6% of (£35,000 − £21,000) = £70.00/month
- Total: £112.11/month
Voluntary overpayments
You can make voluntary overpayments to the Student Loans Company at any time. This can make sense if you are close to paying off your loan and want to stop interest accruing, or if you are on Plan 2 or Plan 5 where interest rates can be significant. However, if your remaining balance is likely to be written off before you fully repay, voluntary overpayments may not be worthwhile. Plan 2 interest is charged at RPI plus up to 3%, depending on your income. Plan 5 interest is capped at RPI only, making it the cheapest plan for graduates earning above the threshold.
Threshold changes
Plan 1, Plan 2, and Plan 4 thresholds increased for 2026/27, while Plan 5 remains at £25,000 and the Postgraduate threshold remains at £21,000. Payroll deductions are assessed by pay period, so an individual payslip can differ slightly from the simple annual examples above.
Source: Gov.uk — Repaying your student loan. Last updated: April 2026.