Student loan thresholds 2026/27
What you repay, from what income, on each plan — and how to tell which plan you are on.
| Plan | Annual threshold | Monthly | Rate above it |
|---|---|---|---|
| Plan 1 | £26,900 | £2,242 | 9% |
| Plan 2 | £29,385 | £2,449 | 9% |
| Plan 4 | £33,795 | £2,816 | 9% |
| Plan 5 | £25,000 | £2,083 | 9% |
| Postgraduate | £21,000 | £1,750 | 6% |
Which plan am I on?
- Plan 1 — English or Welsh student who started before September 2012, or a Northern Irish student.
- Plan 2 — English or Welsh student who started between September 2012 and July 2023.
- Plan 4 — Scottish student.
- Plan 5 — English student who started in or after September 2023.
- Postgraduate — a master's or doctoral loan. It sits on top of any undergraduate plan.
How the deduction works
Repayments are 9% of everything above the threshold — 6% for a Postgraduate Loan — taken through PAYE alongside tax and National Insurance, and rounded down to the whole pound. Like National Insurance, it is assessed per pay period, so a bonus month triggers a larger deduction.
If you have both an undergraduate and a postgraduate loan, both come off: someone on Plan 2 and a Postgraduate Loan repays 15% of the income above the relevant thresholds. The main calculator handles any combination.
When it gets written off
Write-off depends on the plan and when you started — 25 years after repayment began for Plan 2, 40 years for Plan 5, and at a fixed age for older Plan 1 loans. Because most graduates never clear the balance, the repayment functions in practice as an extra 9% marginal tax rate rather than a normal debt. Check the terms for your plan on gov.uk.