How student loan repayments work in 2026/27
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You repay a student loan out of your pay once you earn more than a threshold. What you repay depends on your income, not on how much you owe. Bonuses and overtime count as income.
Which plan you are on
Your plan depends on where you applied for student finance and when you started.
- Plan 1: England or Wales, if your course started before 1 September 2012. Everyone who applied to Student Finance Northern Ireland.
- Plan 2: England, if your course started between 1 September 2012 and 31 July 2023. Wales, if it started on or after 1 September 2012.
- Plan 4: everyone who applied to the Student Awards Agency Scotland.
- Plan 5: England, if your course started on or after 1 August 2023.
- Postgraduate Loan: a master's or doctoral course funded by Student Finance England or Wales.
Thresholds and rates
You repay 9% of what you earn over your plan's threshold, or 6% for a Postgraduate Loan.
- Plan 1: £26,900 a year (£2,241 a month)
- Plan 2: £29,385 a year (£2,448 a month)
- Plan 4: £33,795 a year (£2,816 a month)
- Plan 5: £25,000 a year (£2,083 a month)
- Postgraduate Loan: £21,000 a year (£1,750 a month)
Why your payslip deduction rounds down
Your employer works out the repayment each payday, not over the whole year. They take your pay for that month, subtract the monthly threshold, take 9% of what is left and round it down to the whole pound. So the deduction is never pennies, and twelve payslips add up to slightly less than 9% of your yearly income over the threshold.
It also means a month with a bonus or overtime can trigger a repayment even if your yearly income is under the threshold. If that happens, you can ask for a refund at the end of the tax year.
Postgraduate Loans alongside other plans
A Postgraduate Loan is repaid at the same time as an undergraduate plan, not after it. You pay 6% over the Postgraduate Loan threshold and 9% over your other plan's threshold, both from the same pay.
When loans are written off
Whatever is left is cancelled after a set time, counted from the April you were first due to repay.
- Plan 1: 25 years, or when you turn 65 if your first loan was paid before 1 September 2006
- Plan 2: 30 years
- Plan 4: 30 years. If your first loan was paid before 1 August 2007, it is when you turn 65 if that comes sooner
- Plan 5: 40 years
- Postgraduate Loan (England and Wales): 30 years
Worked examples
Each example assumes you are an employee paid the same amount every month.
£33,000 a year on Plan 1
Monthly pay is £2,750. That is £509 over the £2,241 threshold. 9% of £509 is £45.81, so you repay £45 a month.
£30,000 a year on Plan 2 with a Postgraduate Loan
Monthly pay is £2,500. For Plan 2, 9% of the £52 over the threshold is £4.68, which rounds down to £4. For the Postgraduate Loan, 6% of the £750 over its threshold is £45. You repay £49 a month in total.
£40,000 a year on Plan 5
Monthly pay is £3,333.33, which is £1,250.33 over the £2,083 threshold. 9% of that is £112.53, so you repay £112 a month, or £1,344 a year.
Common questions
Do I repay anything if I earn under the threshold?
No. Repayments stop whenever your pay drops below the threshold, and start again when it goes back over.
What if I have a Plan 1 and a Plan 2 loan?
You repay 9% of your income over the lower of the two thresholds. This calculator handles one undergraduate plan at a time, so pick the plan with the lower threshold.
How do repayments work if I am self-employed?
HMRC works out your repayment from your Self Assessment tax return, using your income for the whole year and the yearly threshold.
Does owing more mean I repay more each month?
No. The size of the loan changes how long you repay for, not the monthly amount.
Where these figures come from
See gov.uk for which repayment plan you are on, what you pay and when your loan gets written off.