Student loan repayments: plans and thresholds (2026/27)
By NetPayFinder team · Updated 5 October 2026 · Figures for the 2026/27 tax year, computed from official rates
Student loan thresholds for Plans 1, 2, 4, 5 and Postgraduate Loans in 2026/27, which plan you are on, and how repayments work with more than one loan.
If you went to university in the UK, you probably have a student loan that’s repaid through your salary. The amount depends on which repayment plan you’re on, and each plan has its own threshold. This guide sets out the thresholds for the current year and explains how repayments are worked out.
Repayment thresholds and rates
Repayments only start once your income is above your plan’s threshold. Here are the thresholds for the current tax year, with the monthly repayment at a salary of £35,000:
| Plan | Yearly threshold | Monthly threshold | Rate | Repayment a month on £35,000 |
|---|---|---|---|---|
| Plan 1 | £26,900 | £2,241.67 | 9% | £60.75 |
| Plan 2 | £29,385 | £2,448.75 | 9% | £42.11 |
| Plan 4 | £33,795 | £2,816.25 | 9% | £9.04 |
| Plan 5 | £25,000 | £2,083.33 | 9% | £75.00 |
| Postgraduate Loan | £21,000 | £1,750.00 | 6% | £70.00 |
You can check the thresholds on GOV.UK’s Repaying your student loan page. They are usually reviewed each April; our guide to this year’s changes shows how they moved.
Which plan you’re on
You can’t choose your plan: it depends on where you applied for student finance, what you studied and when your course started. Broadly:
- Plan 1: you started an undergraduate course in England or Wales before September 2012, or you studied in Northern Ireland.
- Plan 2: you started an undergraduate course in England or Wales between September 2012 and July 2023.
- Plan 4: you applied through the Student Awards Agency Scotland.
- Plan 5: you started an undergraduate course in England on or after 1 August 2023.
- Postgraduate Loan: you took out a loan for a master’s or doctoral course in England or Wales.
If you’re not sure, sign in to your Student Loans Company account and download your plan type letter. Check your payslip too: if your employer is using the wrong plan, show them the letter so they can correct it. GOV.UK’s guide to which repayment plan you’re on has the full rules.
How repayments are worked out
For Plans 1, 2, 4 and 5, you repay 9% of your income above the threshold. For Postgraduate Loans, it’s 6% of income above the postgraduate threshold.
Your employer works this out each payday, using a weekly or monthly share of the yearly threshold. Repayments are based on the same pay that’s used for National Insurance, so:
- bonuses and overtime count in the period they’re paid;
- salary sacrifice reduces repayments, because it reduces your pay before deductions;
- ordinary pension contributions taken under a net pay arrangement don’t reduce them.
For example, on a £35,000 salary with a Plan 2 loan, you repay £42.11 a month, or £505 a year. With a Plan 5 loan instead, it’s £75.00 a month, because the Plan 5 threshold is lower.
Because each period is looked at separately, you may repay something in a month with a large bonus even if your yearly salary is below the threshold. If that happens and your income for the whole year ends up below the threshold, you can ask the Student Loans Company for a refund.
Having more than one loan
Many people have more than one loan, for example an undergraduate loan and a Postgraduate Loan, or loans on two different plans.
Two undergraduate plans. You make one repayment, based on the plan with the lower threshold. The Student Loans Company then splits the money between your loans. For example, with Plan 1 and Plan 2 loans on £35,000, you repay £60.75 a month in total, the same as with a Plan 1 loan alone.
An undergraduate loan and a Postgraduate Loan. You repay both at the same time: the undergraduate repayment on income above that plan’s threshold, and the Postgraduate Loan repayment on income above its own threshold. With Plan 2 and a Postgraduate Loan on £35,000, you repay £112.11 a month.
Student loans and your take-home pay
Student loan repayments come out of your pay after income tax and National Insurance are worked out, but they aren’t a tax. They don’t affect your tax code or your tax bands, and they stop when you’ve repaid the loan or it’s written off.
Because repayments are a share of income above the threshold, they increase the marginal rate on each extra pound you earn. A basic-rate taxpayer with a Plan 2 loan on £35,000 keeps £63.00 of every extra £100, compared with £72.00 without a loan. The pay rise calculator shows the effect of a rise with your plan included.
When repayments start and stop
The earliest you start repaying is the April after you leave your course. Before that, nothing is deducted even if you’re working. Once you’re due to repay, deductions start automatically through your employer whenever your pay is above the threshold, and they pause whenever it falls below.
Repayments stop when you’ve paid off the loan, including interest, or when it’s written off. Loans are written off after a set number of years, which depends on your plan, or if you die or become permanently unable to work. As you get close to clearing the balance, you can ask the Student Loans Company to switch you to direct debit so you don’t overpay through your salary.
Paying off early
You can make extra payments at any time. Whether it’s worth doing depends on your plan, your balance, the interest rate and how likely you are to repay in full before the loan is written off. For many people on Plan 2 or Plan 5, the loan will be written off before it’s repaid, so extra payments may not save money. Look at your balance and plan carefully, or get independent advice, before making voluntary repayments.
Self-employed and overseas
If you’re self-employed, repayments are worked out on your yearly income through Self Assessment and paid with your tax bill. If you move abroad, you must tell the Student Loans Company. Repayments are then based on thresholds for the country you live in and are made directly.
Checking your repayments
Your payslip shows student loan deductions as a separate line, often with the plan type. Check the plan is right, and compare the yearly total on your P60 with your Student Loans Company statement. If you’ve overpaid, for example because your employer used the wrong plan or you paid after clearing your balance, you can claim the money back. Our guide to reading your payslip explains where to look.
To see your take-home pay with your plan, tick it in our take-home pay calculator. If you’re thinking about salary sacrifice, the salary sacrifice calculator includes the student loan saving.