How student loan repayments work (2026/27)
You repay 9% of everything you earn above your plan's threshold (6% for a Postgraduate Loan). Nothing is taken on income below the threshold, and repayments come straight out of your pay through PAYE.
| Plan | Annual threshold | Rate above it |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
If you have both an undergraduate plan and a Postgraduate Loan, you pay both at the same time — 9% over your plan threshold plus 6% over £21,000.
Example: Plan 2, £40,000 salary
You earn £10,615 over the £29,385 threshold, so you repay 9% of that = £955 a year (about £80 a month).
Which plan am I on?
Roughly: Plan 2 = English/Welsh course started Sept 2012–Jul 2023; Plan 5 = English course from Aug 2023; Plan 4 = Scottish; Plan 1 = older loans / Northern Ireland. Check your online student loan account if unsure.
Does interest change what I repay?
No — your monthly repayment depends only on your income, not your balance or interest. Interest affects how long the loan lasts, not the amount taken from your pay.
More United Kingdom calculators
This calculator uses the 2026/27 student loan thresholds and rates published by GOV.UK and is for general information only — it is not financial advice. Repayments are taken through PAYE on income above the threshold. For your exact position see GOV.UK. Source: GOV.UK (Repaying your student loan).