Student Loan Repayments Explained (Plans 1, 2, 4 and 5)
You repay 9% of what you earn over a threshold, and which plan you are on decides the threshold and write-off date.
How repayments work
You only repay your student loan when your income is above a threshold. You repay 9% of everything you earn above it (6% for a Postgraduate Loan). If you are an employee the money is taken from your pay automatically through payroll. Self-employed people repay through their Self Assessment tax return.
It is not like normal debt: your repayment depends on your income, not on how much you borrowed, and it stops if your income falls below the threshold.
Repayment thresholds for 2026/27
| Plan | Yearly threshold | Rate | Written off |
|---|---|---|---|
| Plan 1 | £26,900 | 9% | 25 years after the April you were first due to repay (or at 65 for loans before 1 September 2006) |
| Plan 2 | £29,385 | 9% | 30 years after the April you were first due to repay |
| Plan 4 (Scotland) | £33,795 | 9% | 30 years (loans from 1 August 2007), after the April you were first due to repay |
| Plan 5 | £25,000 | 9% | 40 years after the April you were first due to repay |
| Postgraduate Loan | £21,000 | 6% | 30 years after the April you were first due to repay |
Which plan am I on?
Your plan depends on where and when you started studying. In general Plan 1 covers loans before September 2012 in England and Wales and loans from Northern Ireland, Plan 2 covers England and Wales from September 2012 to July 2023, Plan 5 covers England from August 2023, and Plan 4 is for Scottish loans. Postgraduate Loans are repaid at the same time as your undergraduate loan. Check your plan type in your student finance account.
An example
On a £40,000 salary with a Plan 2 loan you repay 9% of £40,000 minus £29,385, which is £955 a year. Work out your own pay with our take-home pay calculator.
This guide is general information, not financial or legal advice. Rates checked 8 October 2026 against GOV.UK.
Related
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.