Student Loan Repayment Thresholds 2025/26: Plans 1, 2 & 5
Guide to UK student loan repayment for 2025/26. Compare Plan 1, Plan 2, Plan 4, Plan 5, and Postgraduate loan thresholds and rates.
Last updated: February 2026
How Student Loan Repayment Works
Student loan repayments are deducted from your salary by your employer, similar to tax and NI. You only repay when you earn above the threshold for your plan type. Repayments are 9% of income above the threshold (6% for Postgraduate loans).
Despite the name, student loans work more like a graduate tax — if you don't fully repay within the set period, the remaining balance is written off.
Repayment Thresholds 2025/26
| Plan Type | Annual Threshold | Monthly Threshold | Rate | Write-off |
|---|---|---|---|---|
| Plan 1 | £24,990 | £2,082 | 9% | 25 years after April 2035, or age 65 |
| Plan 2 | £27,295 | £2,274 | 9% | 30 years after graduation |
| Plan 4 (Scotland) | £31,395 | £2,616 | 9% | 30 years after graduation |
| Plan 5 | £25,000 | £2,083 | 9% | 40 years after graduation |
| Postgraduate | £21,000 | £1,750 | 6% | 30 years after graduation |
Which Plan Am I On?
- Plan 1: Started university in England/Wales before September 2012, or in Northern Ireland
- Plan 2: Started university in England/Wales from September 2012 onwards (before August 2023)
- Plan 4: Studied in Scotland (undergraduate)
- Plan 5: Started university in England from August 2023 onwards
- Postgraduate: Took a Postgraduate Master's or Doctoral loan from 2016/17 onwards
Check your plan type at gov.uk/student-finance or on your Student Loans Company account.
Repayment Examples
| Salary | Plan 1 | Plan 2 | Plan 4 | Postgraduate |
|---|---|---|---|---|
| £25,000 | £1/year | £0 | £0 | £240/year |
| £30,000 | £451/year | £244/year | £0 | £540/year |
| £35,000 | £901/year | £694/year | £325/year | £840/year |
| £40,000 | £1,351/year | £1,144/year | £775/year | £1,140/year |
| £50,000 | £2,251/year | £2,044/year | £1,675/year | £1,740/year |
Multiple Loans
If you have both an undergraduate loan (Plan 1/2/4/5) and a Postgraduate loan, both are repaid simultaneously once you earn above each threshold. This means you could be paying 9% + 6% = 15% on top of tax and NI.
For example, on a £35,000 salary with Plan 2 + Postgraduate: £694 + £840 = £1,534/year in student loan repayments.
Should I Repay Early?
This depends on your circumstances:
- Plan 1 (pre-2012): Interest rate is low (currently linked to RPI or Bank of England rate). Many people will repay in full, so overpaying can save interest.
- Plan 2 (post-2012): With balances often over £50,000 and RPI+3% interest while studying, most graduates will never fully repay before the 30-year write-off. Overpaying means paying more than you need to.
- Plan 5: Lower interest (RPI only) but 40-year write-off period. Run the numbers carefully.
Rule of thumb: Only consider voluntary repayment if you'd realistically clear the balance before it's written off.
Use our salary calculator to see how your salary breaks down after all deductions including student loans.
Ready to calculate your take-home pay?
Use our free salary calculator with the latest 2025/26 rates.
Calculate Your Salary