Student loan repayment thresholds and rates for 2027/28 — across all five repayment plans.
Last reviewed: 16 September 2026. The Department for Education confirmed the Plan 1 and Plan 2 figures below on 10 August 2026. Plan 4, Plan 5, and Postgraduate Loan thresholds for 2027/28 are not yet confirmed — the figures shown are the current 2026/27 thresholds carried forward provisionally. Check gov.uk for confirmation nearer April 2027.
Repayment Thresholds and Rates — 2027/28
| Plan | Who has it | Threshold 2027/28 | Repayment rate | Write-off |
|---|---|---|---|---|
| Plan 1 | Before Sep 2012 (England/Wales), Scotland before 2006 | £28,005/year (confirmed 10 Aug 2026) | 9% above threshold | 25 years / age 65 |
| Plan 2 | Sep 2012–July 2023 (England/Wales) | £29,385/year (confirmed frozen through 2029/30) | 9% above threshold | 30 years |
| Plan 4 | Scotland (post-2006) | ~£33,795/year (not yet confirmed — 2026/27 figure shown) | 9% above threshold | 30 years |
| Plan 5 | From Aug 2023 (England) | ~£25,000/year (not yet confirmed — 2026/27 figure shown) | 9% above threshold | 40 years |
| Postgraduate | Masters/PhD/PGCE | ~£21,000/year (not yet confirmed — 2026/27 figure shown) | 6% above threshold | 30 years |
Note: Plan 1 and Plan 2 figures were confirmed by the Department for Education on 10 August 2026. Plan 4, Plan 5, and Postgraduate Loan thresholds for 2027/28 had not been announced as of September 2026 — check gov.uk for the confirmed figures nearer April 2027.
Monthly Repayments — 2027/28 Worked Examples
Plan 2 (most common for 2023–2027 graduates)
| Annual salary | Monthly repayment | Annual repayment |
|---|---|---|
| £25,000 | £0 (below threshold) | £0 |
| £29,385 | £0 (at threshold) | £0 |
| £30,000 | £4.61 | £55 |
| £35,000 | £42.11 | £505 |
| £40,000 | £79.61 | £955 |
| £50,000 | £154.61 | £1,855 |
Plan 5 (graduates from August 2023 onwards)
| Annual salary | Monthly repayment | Annual repayment |
|---|---|---|
| £24,999 | £0 (below threshold) | £0 |
| £27,000 | £15.00 | £180 |
| £35,000 | £75.00 | £900 |
| £45,000 | £150.00 | £1,800 |
Interest Rates on Student Loans — 2027/28
Student loan interest rates are updated each September. Approximate rates for 2027/28 (to be confirmed):
| Plan | Interest rate calculation |
|---|---|
| Plan 1 | Lower of RPI or Bank of England base rate + 1% |
| Plan 2 | RPI to RPI + 3% (sliding scale based on income); capped at 6% for 2026/27 — 2027/28 cap not yet confirmed |
| Plan 4 | Lower of RPI or Bank of England base rate + 1% |
| Plan 5 | RPI (frozen basis — being reviewed) |
| Postgraduate | RPI + 3%; capped at 6% for 2026/27 — 2027/28 cap not yet confirmed |
Repaying Two Student Loans Simultaneously
It is possible to have Plan 2 and a Postgraduate Loan at the same time. Both are deducted separately:
| Repayment | |
|---|---|
| Plan 2: 9% of income above £29,385 | Yes |
| Postgraduate: 6% of income above ~£21,000 (not yet confirmed for 2027/28) | Yes (on top) |
| Total combined deduction | Up to 15% of income above respective thresholds |
Student Loans and Mortgage Affordability
Student loan repayments are treated as a regular monthly deduction by most mortgage lenders — meaning they reduce the income available for mortgage affordability calculations.
How lenders typically treat student loans:
- Many lenders deduct actual student loan repayments from disposable income when stress-testing affordability
- Some lenders use the monthly repayment amount; others assume 9% of income above the threshold
- A higher-earning borrower on Plan 2 earning £50,000 would make repayments of approximately £155/month (based on the confirmed £29,385 threshold) — this reduces the mortgage they can borrow
If you are close to the repayment threshold and know your loan balance will be written off soon (Plan 2: 30 years from April after graduation; Plan 5: 40 years), this may factor into a lender’s assessment. Speak to a mortgage broker if student loan repayments are affecting your affordability significantly.
Should You Make Voluntary Overpayments?
For most borrowers on Plan 2 or Plan 5, voluntary overpayments are generally not recommended because:
- The loan is written off after a set period regardless of the balance
- Higher-earning graduates who will repay in full may benefit from overpaying — but only if the interest rate is above alternative savings/investment returns
- Lower-to-average earners will rarely repay the full balance before write-off — voluntary overpayments effectively become a gift to the government
When voluntary overpayments can make sense:
- You are on Plan 1 (very low or zero interest rate — worth clearing if you have spare cash)
- You are a high earner on Plan 2 and your projected lifetime repayments exceed the outstanding balance
- You have a postgraduate loan at a rate above your savings rate
Use the Student Loan Repayment Calculator at studentfinance.gov.uk to model your own trajectory before deciding.
If You Think You Have Overpaid
Student Loan Company (SLC) overpayments happen when PAYE repayments continue after the account should have been cleared — often due to HMRC reporting delays. If you believe you have overpaid:
- Contact the SLC at slc.co.uk or 0300 100 0611
- SLC will request your repayment history from HMRC
- Refunds are typically processed within 4–6 weeks of the overpayment being confirmed
SLC is required to refund any overpayment — do not ignore it if you believe your loan should have been cleared.