Student loans
What will actually come off your payslip?
Plan 1, 2, 4, 5 and Postgraduate — worked out together.
Student loan repayment calculator
Plan 1, 2, 4, 5 and Postgraduate — 2026/27 thresholds
Undergraduate repayment
£20
£235/year
Postgraduate repayment
£0
£0/year
Total monthly
£20
£235/year
2026/27 thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate £21,000. Repayment rates: 9% above threshold for Plans 1/2/4/5, 6% above threshold for Postgraduate. If you hold both an undergraduate and a Postgraduate loan, both are repaid simultaneously.
Which plan you're on depends on when and where you studied — Plan 2 covers most English and Welsh students who started between 2012 and 2023, Plan 5 covers those starting after August 2023, and Plan 4 applies to Scottish students. Repayments are 9% of everything you earn above your plan's threshold, deducted automatically through payroll — not 9% of your whole salary. Because any remaining balance is written off after a set number of years, high earners on track to clear the loan early benefit most from overpaying; most graduates on average earnings never repay the full balance before write-off.
Frequently asked questions
What is the Plan 2 student loan repayment threshold?
£29,385 a year for 2026/27 — you repay 9% of everything you earn above that threshold.
How much is the Postgraduate Loan repayment rate?
6% of income above £21,000 a year, on top of any undergraduate loan repayment if you have both.