Student Loan Repayment Guide 2026/27
Student loan repayments are deducted automatically from your salary once you earn over the threshold. Here's how each plan works.
Repayment Thresholds 2026/27
| Plan | Threshold | Rate | Write-Off |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | Age 65 |
| Plan 2 | £27,295 | 9% | 30 years |
| Plan 4 | £31,395 | 9% | 30 years (or age 65) |
| Plan 5 | £25,000 | 9% | 40 years |
| Postgraduate | £21,000 | 6% | 30 years |
Which Plan Am I On?
| Plan | Who |
|---|---|
| Plan 1 | England/Wales students before Sept 2012; NI students |
| Plan 2 | England/Wales students after Sept 2012 |
| Plan 4 | Scottish students after Sept 1998 |
| Plan 5 | England students after Aug 2023 |
| Postgraduate | Postgraduate Master's/Doctoral loans |
Check your plan at Student Loans Company or on your payslip.
How Repayments Work
You repay 9% of income above the threshold:
Example: Plan 2, £35,000 salary
- Income over threshold: £35,000 - £27,295 = £7,705
- Repayment: £7,705 × 9% = £693/year
- Monthly deduction: £58
Repayment Calculations
Plan 1 (£24,990 threshold)
| Salary | Annual Repayment | Monthly |
|---|---|---|
| £25,000 | £1 | £0 |
| £30,000 | £451 | £38 |
| £40,000 | £1,351 | £113 |
| £50,000 | £2,251 | £188 |
Plan 2 (£27,295 threshold)
| Salary | Annual Repayment | Monthly |
|---|---|---|
| £30,000 | £243 | £20 |
| £40,000 | £1,143 | £95 |
| £50,000 | £2,043 | £170 |
| £60,000 | £2,943 | £245 |
Multiple Loans
If you have both undergraduate and postgraduate loans:
- Both deducted simultaneously
- Plan 1/2/4/5 at 9%
- Postgraduate at 6%
- Total: up to 15% of income over lowest threshold
Interest Rates
Plan 1
Bank of England base rate + 1%
Plan 2
RPI + 0% to RPI + 3% (based on income)
Plan 4
Bank of England base rate + 1%
Plan 5
RPI only (capped at previous year's RPI)
Write-Off Rules
| Plan | Written Off After |
|---|---|
| Plan 1 | Age 65 |
| Plan 2 | 30 years from April after graduation |
| Plan 4 | 30 years (or age 65 if earlier) |
| Plan 5 | 40 years from April after graduation |
The remaining balance is cancelled - no tax implications.
Voluntary Repayments
You can make voluntary repayments to pay off faster:
- Via Student Loans Company
- Consider opportunity cost vs interest rate
- Often not worth it if loan will be written off
Related Calculators
- Student Loan Calculator - Calculate repayments
- Take Home Pay Calculator - See loan deductions