Student loan repayments in 2026/27 are 9% of income above your plan’s threshold: £26,900 on Plan 1, £29,385 on Plan 2, £33,795 on Plan 4 and £25,000 on Plan 5, plus 6% above £21,000 for a Postgraduate Loan. Someone on £35,000 with a Plan 2 loan repays £505 a year, about £42 a month; on Plan 5 the same salary repays £900. The plan you are on depends on where and when you studied, and it sets both the threshold and how long the loan lasts before it is written off.
The thresholds and rates
| Plan | Who is on it | Annual threshold | Monthly | Weekly | Rate above threshold | Written off after |
|---|---|---|---|---|---|---|
| Plan 1 | Started before September 2012 in England or Wales, or any time in Northern Ireland | £26,900 | £2,241 | £517 | 9% | 25 years |
| Plan 2 | Started September 2012 to July 2023 in England or Wales | £29,385 | £2,448 | £565 | 9% | 30 years |
| Plan 4 | Scottish students | £33,795 | £2,816 | £649 | 9% | 30 years |
| Plan 5 | Started from August 2023 in England | £25,000 | £2,083 | £480 | 9% | 40 years |
| Postgraduate Loan | Master’s or doctoral loan, England and Wales | £21,000 | £1,750 | £403 | 6% | 30 years |
Repayments through PAYE are worked out on each payslip against the monthly or weekly threshold, so a month with a bonus produces a larger deduction than the annual figure suggests, and a month below the threshold produces none. Self-employed borrowers repay through Self Assessment on total income. The which student plan calculator confirms the plan from your start date and country.
What you repay at each salary
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgraduate |
|---|---|---|---|---|---|
| £25,000 | £0 | £0 | £0 | £0 | £240 |
| £30,000 | £279 (£23 a month) | £55 (£5) | £0 | £450 (£38) | £540 (£45) |
| £35,000 | £729 (£61) | £505 (£42) | £108 (£9) | £900 (£75) | £840 (£70) |
| £40,000 | £1,179 (£98) | £955 (£80) | £558 (£47) | £1,350 (£113) | £1,140 (£95) |
| £50,000 | £2,079 (£173) | £1,855 (£155) | £1,458 (£122) | £2,250 (£188) | £1,740 (£145) |
| £60,000 | £2,979 (£248) | £2,755 (£230) | £2,358 (£197) | £3,150 (£263) | £2,340 (£195) |
An undergraduate plan and a Postgraduate Loan are repaid at the same time from the same income, so a Plan 2 graduate with a master’s loan on £40,000 repays £955 plus £1,140, £2,095 a year or £175 a month. The student loan repayment calculator gives the monthly deduction for any salary, plan and combination.
Interest in 2026/27
Interest accrues from the first payment of the loan, whether or not you are repaying.
- Plan 1, Plan 4 and Plan 5 are charged at the Retail Prices Index figure used for the year, 4.1%.
- Plan 2 is charged at RPI alone, 4.1%, for income at or below £29,385, rising on a sliding scale to RPI plus 3% at £52,885 and above. From 1 September 2026 to 31 August 2027 a cap of 6% applies, so no Plan 2 borrower pays more than 6% in that period.
- Postgraduate Loans are charged at RPI plus 3% throughout.
The student loan interest calculator shows the rate for your income and what it adds to the balance in a year.
Whether the balance will ever be cleared
For most Plan 2 borrowers on ordinary salaries, repayments do not keep pace with interest and the balance is written off after 30 years with a large sum outstanding. In that case the loan behaves as a 9% tax on income above the threshold for three decades, and paying extra achieves nothing except reducing the amount eventually written off. Plan 5 runs for 40 years with a lower threshold, so more borrowers will clear it, but over a much longer period. Plan 1 borrowers, with smaller balances and 25 years, more often clear the loan and can gain from overpaying. The student loan overpayment calculator tests your own balance, salary and plan against the write-off date before any voluntary payment.
Two rules worth knowing
Deductions follow National Insurance pay. PAYE repayments are calculated on the pay that counts for National Insurance, so a salary sacrifice pension contribution reduces the repayment while a relief at source contribution does not. Our guide on salary sacrifice and your student loan works through the effect.
Each job is assessed on its own. Two jobs that each pay below the threshold attract no PAYE repayments even if the combined income is above it, unless a Self Assessment return brings the total into account. The second job guide covers the detail.
Common questions
What is the Plan 2 repayment threshold for 2026/27? £29,385 a year, £2,448 a month or £565 a week. You repay 9% of income above it.
What is the Plan 5 threshold? £25,000 a year, £2,083 a month. Plan 5 applies to students who started a course in England from 1 August 2023 and runs for 40 years.
How much do I repay on £30,000? £279 a year on Plan 1, £55 on Plan 2, nothing on Plan 4 and £450 on Plan 5. A Postgraduate Loan adds £540.
Do repayments stop if my salary falls below the threshold? Yes. Repayments are taken only on income above the threshold in each pay period, so a month below it produces no deduction, and you can ask for a refund of deductions taken in a year when your total income was under the annual threshold.
When is my student loan written off? 25 years after the April you were first due to repay for Plan 1, 30 years for Plan 2, Plan 4 and Postgraduate Loans, and 40 years for Plan 5, or on death or permanent disability.
Is it worth overpaying my student loan? Only if you would clear the balance before it is written off. For many Plan 2 borrowers the answer is no; the overpayment calculator gives the figure for your case.
Information, not financial advice. Thresholds, rates and write-off periods are the published 2026/27 figures on gov.uk: repaying your student loan and the Plan 2 interest guidance; repayment figures are estimates from the site’s calculators. Check your own statement with the Student Loans Company before acting on them.