Student loan repayment thresholds 2026/27
Student loan repayments rise and fall with income. Each plan has a threshold, and the borrower repays a fixed share of income above it. The table lists the threshold and rate for every plan in the 2026/27 tax year.
| Plan | Threshold a year | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate loan | £21,000 | 6% |
Source: www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027, checked 22 September 2026
Which plan applies
The plan depends on where the borrower lived when they applied and when the course started. Plan 1 covers older loans from England and Wales and all loans taken out in Northern Ireland. Plan 2 covers undergraduate loans from England and Wales that started later, and Welsh students have stayed on it since. Plan 4 is for loans from Scotland. Plan 5 covers the most recent English undergraduate loans. The Postgraduate Loan covers master's and doctoral courses funded in England or Wales.
The Student Loans Company sends each borrower a statement that names the plan. Some people hold more than one, for example an undergraduate plan and a Postgraduate Loan.
How a repayment is worked out
The undergraduate plans take 9% of income above the threshold. The Postgraduate Loan takes 6% above its own threshold of £21,000, and it is paid at the same time as any undergraduate plan.
Plan 5 has the lowest undergraduate threshold, at £25,000, so repayments on it begin at a lower salary than on Plan 2, where the threshold is £29,385. Plan 4 has the highest, at £33,795. Plan 1 starts at £26,900.
Payroll and the calculators
Employers take repayments through payroll, using a weekly or monthly share of the threshold, and pass them to HMRC. A month with overtime or a bonus can bring a repayment even when yearly pay stays under the threshold. The take-home pay calculator has a setting for each plan and shows the repayment in its working. Each of the salary after tax pages shows what every plan costs at that salary. Student loan repayments use the same pay figure as National Insurance, so salary sacrifice lowers both.
Questions
Is anything repaid on income below the threshold?
No. A borrower whose income stays under the threshold for their plan repays nothing in that period, and the loan balance stays in place with interest added.
Can someone repay two plans at once?
Yes. The Postgraduate Loan is repaid alongside any undergraduate plan. Where someone holds two undergraduate plans, the repayment is based on income above the lower of the two thresholds.
Does the rate depend on how much was borrowed?
No. The monthly repayment depends only on income above the threshold. A larger balance changes how long repayments last and how much interest builds up.
Are student loan repayments taken before or after tax?
They are worked out on gross pay, the same figure used for National Insurance, and come out of pay after income tax.
This is information, not financial advice.