Repayment thresholds 2026/27
| Plan | Yearly threshold | Monthly threshold | Rate |
|---|---|---|---|
| Plan 1 | £26,900 | £2,242 | 9% |
| Plan 2 | £29,385 | £2,449 | 9% |
| Plan 4 (Scotland) | £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: students from England or Wales who started before September 2012, and students from Northern Ireland.
- Plan 2: students from England or Wales who started between September 2012 and July 2023.
- Plan 4: students from Scotland.
- Plan 5: students from England who started on or after 1 August 2023.
- Postgraduate loan: master's and doctoral loans, repaid alongside any undergraduate plan.
Monthly repayments by salary
Monthly repayment on a regular salary for each plan:
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgraduate |
|---|---|---|---|---|---|
| £25,000 | £0 | £0 | £0 | £0 | £20 |
| £30,000 | £23 | £5 | £0 | £38 | £45 |
| £35,000 | £61 | £42 | £9 | £75 | £70 |
| £40,000 | £98 | £80 | £47 | £113 | £95 |
| £50,000 | £173 | £155 | £122 | £188 | £145 |
| £60,000 | £248 | £230 | £197 | £263 | £195 |
| £80,000 | £398 | £380 | £347 | £413 | £295 |
When is the loan written off?
Any balance left is cancelled after a set period: typically 25 years for newer Plan 1 loans, 30 years for Plan 2 and Plan 4, and 40 years for Plan 5. Many Plan 2 borrowers never repay in full.
Because repayments work like an extra tax on income above the threshold, paying off a loan early only makes sense if you are likely to clear it before it is written off.
Your real marginal rate with a student loan
| Income band | Income Tax | NI | Student loan | Total |
|---|---|---|---|---|
| Above the plan threshold, up to £50,270 | 20% | 8% | 9% | 37% |
| £50,270 to £100,000 | 40% | 2% | 9% | 51% |
| £100,000 to £125,140 | 60% | 2% | 9% | 71% |
With a Postgraduate loan on top, add another 6%.
Overpayments and refunds
Repayments are taken on each payslip, so a single high-earning month can trigger a repayment even if your annual income stays below the threshold. You can ask the Student Loans Company for a refund in that case.
You can also claim back repayments taken after your loan was fully repaid, or before the April you became eligible to repay.
Frequently asked questions
What is the Plan 2 threshold for 2026/27?
£29,385 a year, or £2,449 a month.
How much is 9% of my salary for student loan?
It is 9% of the amount above your threshold, not of your whole salary. On £35,000 with Plan 2, that is about £42 a month.
Can I have two student loans at once?
Yes. Undergraduate and Postgraduate loans are repaid at the same time, at 9% and 6%.
Is student loan repayment taken before or after tax?
It is calculated on your gross pay, like National Insurance, and taken after tax from your payslip.
Can I get a refund of student loan repayments?
Yes, if you earned under the annual threshold overall, or repaid after your balance was cleared.
Figures use HMRC 2026/27 Income Tax bands (including Scottish rates), Class 1 National Insurance and student loan thresholds for an employee paid through PAYE. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.