Student loan repayments 2026/27: thresholds for every plan, and Plan 5 explained
Student loan repayments come straight out of your pay, so they make a real difference to your take-home pay. The thresholds changed in April 2026, and 2026/27 is also the first year anyone repays a Plan 5 loan.
Thresholds for 2026/27
| Plan | Who it's for (broadly) | Threshold | Rate |
|---|---|---|---|
| Plan 1 | Northern Ireland students, and English and Welsh students who started before September 2012 | £26,900 | 9% |
| Plan 2 | English and Welsh students who started between September 2012 and July 2023 | £29,385 | 9% |
| Plan 4 | Scottish students | £33,795 | 9% |
| Plan 5 | English students who started on or after 1 August 2023 | £25,000 | 9% |
| Postgraduate | Master's and doctoral loans in England and Wales | £21,000 | 6% |
Check your plan type in your Student Loans Company online account if you're not sure.
How repayments are worked out
You only repay on the part of your income above the threshold. On a £35,000 salary with a Plan 2 loan, you repay 9% of £5,615 (the amount over £29,385), which is about £505 a year or £42 a month. With a Plan 5 loan, the same salary means 9% of £10,000, which is £900 a year or £75 a month.
If you have a postgraduate loan as well as an undergraduate loan, you repay both at the same time.
What's different about Plan 5
Plan 5 has the lowest threshold of any current plan, at £25,000, and the loan is written off after 40 years rather than 30 for Plan 2. That means most Plan 5 borrowers will repay for longer and repay more over their working life.
Should you pay it off early?
For many people on Plans 2 and 5, the loan will be written off before it's fully repaid, so extra payments may never be needed. For higher earners, paying early can save interest. It depends on your salary and how it's likely to grow, so think carefully before making voluntary payments.
Add your plan to our take-home pay calculator to see the effect on your monthly pay.