What is the student loan repayment threshold for 2026/27?

It depends on your plan type. Plan 1: £24,990/year. Plan 2: £27,295/year. Plan 4 (Scotland): £31,395/year. Plan 5 (from 2023): £25,000/year. Postgraduate Loan: £21,000/year. You only repay 9% (or 6% for PG loans) on earnings above your threshold.

How much student loan will I pay on a £30,000 salary?

On £30,000, monthly repayments are: Plan 1: £37.58, Plan 2: £20.29, Plan 4: £0 (below threshold), Plan 5: £37.50, Postgraduate: £45.00. If you have both a Plan 2 and Postgraduate loan, you'd pay £20.29 + £45.00 = £65.29 total.

Which student loan plan am I on?

Plan 1: Started before September 2012 (England/Wales) or any time in NI. Plan 2: Started September 2012 onwards (England/Wales). Plan 4: Scotland. Plan 5: Started August 2023 onwards (England). Check your Student Loans Company account or payslip for your plan type.

When do student loans get written off?

Plan 1: 25 years after April following graduation (or age 65). Plan 2: 30 years after April following graduation. Plan 4: 30 years (or age 65). Plan 5: 40 years after April following graduation. Postgraduate: 30 years. The remaining balance is cancelled and you owe nothing more.

Do I pay student loan on two jobs?

Student loan is deducted from each job individually based on that job's pay. If each job pays under the threshold, you may underpay and need to make up the difference via Self Assessment. HMRC will reconcile at year end if you've underpaid.

Student Loan Repayment Thresholds 2026/27 — All Plan Types Explained | PocketWise

Student loan repayments are deducted automatically from your salary once you earn above your plan’s threshold. Here are all the rates and thresholds for 2026/27.

Student Loan Repayment Thresholds 2026/27

Plan Type	Annual Threshold	Monthly	Weekly	Repayment Rate
Plan 1	£24,990	£2,082.50	£480.57	9%
Plan 2	£27,295	£2,274.58	£524.90	9%
Plan 4 (Scotland)	£31,395	£2,616.25	£603.75	9%
Plan 5	£25,000	£2,083.33	£480.77	9%
Postgraduate Loan	£21,000	£1,750	£403.85	6%

Which Plan Are You On?

Plan	Who It Applies To
Plan 1	England/Wales: Started course before 1 September 2012 Northern Ireland: All student loans
Plan 2	England/Wales: Started course on or after 1 September 2012, before 1 August 2023
Plan 4	Scotland: All student loans
Plan 5	England: Started course on or after 1 August 2023
Postgraduate	Postgraduate Master’s or Doctoral loan (any start date)

How to Check Your Plan

Method	How
Student Loans Company account	Log in at gov.uk/sign-in-to-manage-your-student-loan-balance
Your payslip	Shows plan type (e.g., “SL1”, “SL2”, “PGL”)
When you studied	Use the dates above
Call SLC	0300 100 0611

Monthly Repayments by Salary

Plan 1 (Threshold: £24,990)

Annual Salary	Monthly Repayment	Annual Repayment
£25,000	£0.75	£9
£28,000	£22.58	£271
£30,000	£37.58	£451
£35,000	£75.08	£901
£40,000	£112.58	£1,351
£50,000	£187.58	£2,251
£60,000	£262.58	£3,151

Plan 2 (Threshold: £27,295)

Annual Salary	Monthly Repayment	Annual Repayment
£28,000	£5.29	£63
£30,000	£20.29	£243
£35,000	£57.79	£693
£40,000	£95.29	£1,144
£50,000	£170.29	£2,044
£60,000	£245.29	£2,944
£80,000	£395.29	£4,744

Plan 4 — Scotland (Threshold: £31,395)

Annual Salary	Monthly Repayment	Annual Repayment
£32,000	£4.54	£54
£35,000	£27.04	£324
£40,000	£64.54	£775
£50,000	£139.54	£1,675
£60,000	£214.54	£2,575

Plan 5 (Threshold: £25,000)

Annual Salary	Monthly Repayment	Annual Repayment
£26,000	£7.50	£90
£28,000	£22.50	£270
£30,000	£37.50	£450
£35,000	£75.00	£900
£40,000	£112.50	£1,350
£50,000	£187.50	£2,250

Postgraduate Loan (Threshold: £21,000)

Annual Salary	Monthly Repayment	Annual Repayment
£25,000	£20.00	£240
£30,000	£45.00	£540
£35,000	£70.00	£840
£40,000	£95.00	£1,140
£50,000	£145.00	£1,740

Multiple Loans — How Repayments Work

If you have more than one type of loan, you pay both simultaneously:

Plan 2 + Postgraduate Loan

Annual Salary	Plan 2 (9%)	PG Loan (6%)	Total Monthly
£30,000	£20.29	£45.00	£65.29
£40,000	£95.29	£95.00	£190.29
£50,000	£170.29	£145.00	£315.29
£60,000	£245.29	£195.00	£440.29

Plan 1 + Plan 2 (Changed Courses)

If you have both Plan 1 and Plan 2 loans (rare — changed course mid-way), the rules are complex. Usually you repay both concurrently once over the lower threshold.

Student Loan Interest Rates 2026/27

Plan Type	Interest Rate	How It’s Calculated
Plan 1	Lower of RPI or Bank of England rate + 1%	Variable
Plan 2	RPI + up to 3% (income-dependent)	See below
Plan 4	RPI only	Variable
Plan 5	RPI only	Variable
Postgraduate	RPI + 3%	Fixed addition

Plan 2 Interest Rate — Income-Based

Income	Interest Rate
Up to £27,295	RPI only
£27,295 – £49,130	RPI + 0% to 3% (sliding scale)
Over £49,130	RPI + 3%

Current RPI (as of early 2026): approximately 3.5%, so Plan 2 interest ranges from 3.5% to 6.5%.

When Are Student Loans Written Off?

Plan Type	Write-Off Period
Plan 1	25 years after April following graduation (or age 65, whichever earlier)
Plan 2	30 years after April following graduation
Plan 4	30 years after April following graduation (or age 65)
Plan 5	40 years after April following graduation
Postgraduate	30 years after April following graduation

Write-Off Examples

Graduated	Plan	Written Off
July 2015	Plan 2	April 2046
July 2020	Plan 2	April 2051
July 2024	Plan 5	April 2065
July 2010	Plan 1	April 2036

Should You Repay Early?

Consider Voluntary Repayments If:

Factor	Why It Matters
High income (over ~£50k)	Likely to repay in full
Low loan balance	May clear quickly
Interest bothers you psychologically	Peace of mind
Expect significant salary increases	May repay most anyway

Don’t Overpay If:

Factor	Why It Matters
Unlikely to repay in full	Write-off means free money
Have other higher-interest debt	Clear that first
Low/average income	May never clear balance
Close to write-off date	Balance will be cancelled

The Numbers

Most Plan 2 graduates will not repay their loans in full before write-off. The IFS estimates:

Income Trajectory	Likely to Repay in Full?
Low earner (median)	No — will be written off
Average earner	No — approximately 80% written off
High earner (top 20%)	Likely yes
Very high earner	Yes, quickly

Self-Employment and Student Loans

Self-employed people repay student loans through Self Assessment.

How It Works

Step	Process
1	Complete Self Assessment tax return
2	HMRC calculates student loan due
3	Included in your tax bill (paid 31 January or as payments on account)
4	9% of profits above threshold (or 6% for PG loan)

Self-Employed Repayment Example

Annual Profit	Plan 2 Repayment
£30,000	£243/year
£40,000	£1,143/year
£50,000	£2,043/year

Employed + Self-Employed

If you have both employed and self-employed income:

Calculation	Method
Employed income	Deducted via PAYE automatically
Self-employed income	Additional repayment via Self Assessment
Total income	Combined for threshold calculation

You may end up paying less via PAYE but owing more via Self Assessment if combined income pushes you over the threshold.

Repaying While Abroad

Situation	Rules
Working abroad temporarily	Continue repaying if UK employer
Emigrated	Must contact SLC and make direct repayments
Country-based thresholds	SLC sets different thresholds per country
Ignoring SLC abroad	Balance grows; penalties if you return

Overseas Thresholds

SLC sets repayment thresholds based on living costs in your country. Some examples:

Country	Approximate Threshold
Australia	Higher than UK
USA	Similar to UK
Germany	Similar to UK
Thailand	Much lower than UK

Key Changes for 2026/27

Change	Detail
Plan 2 threshold	Frozen at £27,295 (was £27,295 in 2025/26)
Plan 5 threshold	Frozen at £25,000
Interest rates	Continue to vary with RPI
Plan 5 write-off	40 years (stricter for new borrowers)

Common Questions

Can I Pause Repayments?

Situation	Can You Pause?
Unemployed	Automatic — earn below threshold
Maternity leave	Automatic if pay drops below threshold
Sick leave	Automatic if pay drops below threshold
Choosing to pause	No — must contact SLC for hardship cases

What If My Employer Deducts Too Much?

Scenario	Solution
Overpaid	SLC will refund at end of tax year
Wrong plan	Contact employer/HMRC to fix tax code
Should have finished	Contact SLC for refund

Does Student Loan Affect Mortgages?

Impact	How
Affordability	Lenders factor repayments into calculations
Credit file	Student loans don’t appear on credit report
Overall effect	Reduces borrowing capacity by ~10× annual repayment