Student loan repayments in 2026/27
You repay 9% of what you earn above your plan's threshold (6% for Postgraduate Loans). Below the threshold you pay nothing, and repayments come straight out of your pay.
2026/27 repayment thresholds.
| Plan | Who has it | Annual threshold | Rate |
|---|---|---|---|
| Plan 1 | England/Wales before 2012; Northern Ireland | £26,900 | 9% |
| Plan 2 | England/Wales from 2012 to July 2023 | £29,385 | 9% |
| Plan 4 | Scotland | £33,795 | 9% |
| Plan 5 | England, courses starting from August 2023 | £25,000 | 9% |
| Postgraduate | Master's or Doctoral loan | £21,000 | 6% |
Repayments are worked out on pay after any salary sacrifice. If you have more than one plan, your employer applies them together; a Postgraduate Loan is repaid on top of an undergraduate plan.
Monthly repayments at common salaries.
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgraduate |
|---|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £0.00 | £0.00 | £20.00 |
| £30,000 | £23.25 | £4.61 | £0.00 | £37.50 | £45.00 |
| £40,000 | £98.25 | £79.61 | £46.54 | £112.50 | £95.00 |
| £50,000 | £173.25 | £154.61 | £121.54 | £187.50 | £145.00 |
Add your plan in the take-home pay calculator to see your full monthly pay after tax, National Insurance and student loan.
Student loan FAQs
Is the threshold based on my annual salary?
Payroll uses your pay in each period. The monthly threshold is the annual figure divided by 12, so a one-off bonus month can trigger a repayment even if your annual pay is below the threshold.
Does a pension reduce my student loan repayments?
Only salary sacrifice does, because it lowers your pay. Net pay and relief-at-source pensions do not change the repayment.
Is the student loan like other debt?
Not really. Repayments depend on income rather than the balance, and any balance left is written off after the plan's set period.
£40k after tax → · Salary after tax explained →
Source: GOV.UK: what you pay. Estimates for planning only.