Thresholds for 2026–27
| Plan | Threshold (year) | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Source: GOV.UK, repaying your student loan. Repayments are worked out on each payslip against the monthly or weekly threshold; the yearly figures below are the annual equivalent.
What each plan takes, salary by salary
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgraduate |
|---|---|---|---|---|---|
| £25,000 | £0 | £0 | £0 | £0 | £240 |
| £30,000 | £279 | £55 | £0 | £450 | £540 |
| £40,000 | £1,179 | £955 | £558 | £1,350 | £1,140 |
| £50,000 | £2,079 | £1,855 | £1,458 | £2,250 | £1,740 |
| £65,000 | £3,429 | £3,205 | £2,808 | £3,600 | £2,640 |
| £100,000 | £6,579 | £6,355 | £5,958 | £6,750 | £4,740 |
Plan 5 has the lowest threshold of the undergraduate plans, so on the same salary it takes the most.
A worked example
On £40,000 with a Plan 2 loan, you repay 9% of the £10,615 above the threshold: £955 a year, about £80 a month. It comes on top of £5,486 income tax and £2,194 National Insurance, leaving £31,364.
At the margin it bites harder than it looks: 20% income tax, 8% NI and 9% repayment mean you keep 63% of each extra pound you earn. For a higher-rate taxpayer with a loan, it is 40% + 2% + 9%.
Rules worth knowing
- If you have more than one undergraduate plan, you repay 9% over the lowest of their thresholds, not 9% for each plan.
- A Postgraduate Loan is repaid on top: 6% over £21,000. On £45,000 with Plan 2 and a Postgraduate Loan you repay £2,845 a year.
- Salary sacrifice lowers the pay that repayments are worked out on. On £45,000 with Plan 2, a 5% sacrifice cuts the repayment from £1,405 to £1,203.
- Interest and write-off dates differ by plan and are not modelled here: what you repay each year depends only on your pay.
Questions people ask
Is it worth paying off a student loan early?
It depends on your plan, your future pay, the interest rate and when the loan is written off. That calculation is outside this tool, which shows what each year's pay costs you.
Does the repayment show as tax?
It is collected through PAYE like tax, but it is a loan repayment. This calculator lists it as a separate line.
What if my pay goes up and down?
Repayments are taken each pay period, so a month with a bonus or overtime can trigger a repayment even if your yearly pay is under the threshold. GOV.UK says you can ask for a refund at the end of the tax year if your annual income is below the yearly threshold.