Key points
- You repay 9% of what you earn over your plan's threshold: £29,385 a year on Plan 2.
- A Postgraduate Loan adds 6% of what you earn over £21,000, on top.
- Earn under the threshold and you repay nothing that year.
- Two undergraduate plans don't double up: you repay once, from the lower threshold.
Work out your own
See your own monthly repayment on any plan, with a Postgraduate Loan too.
Open the student loan calculatorThe thresholds for 2026/27
You repay a share of what you earn above your plan's threshold. Earn less and you repay nothing that year.
| Plan | Yearly threshold | You repay |
|---|---|---|
| Plan 1 | £26,900 | 9% above it |
| Plan 2 | £29,385 | 9% above it |
| Plan 4 | £33,795 | 9% above it |
| Plan 5 | £25,000 | 9% above it |
| Postgraduate Loan | £21,000 | 6% above it |
Plan 4 is for loans taken out in Scotland; Plan 1 covers older loans in England and Wales and loans in Northern Ireland; Plan 2 covers most English and Welsh loans from 2012 to 2023, and Plan 5 courses starting from August 2023.
What you repay each month
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgrad |
|---|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £0.00 | £0.00 | £20.00 |
| £30,000 | £23.25 | £4.61 | £0.00 | £37.50 | £45.00 |
| £35,000 | £60.75 | £42.11 | £9.04 | £75.00 | £70.00 |
| £45,000 | £135.75 | £117.11 | £84.04 | £150.00 | £120.00 |
| £60,000 | £248.25 | £229.61 | £196.54 | £262.50 | £195.00 |
If you have more than one loan
With two undergraduate plans, such as Plan 1 and Plan 2, you repay 9% of your income over the lower threshold (£26,900) in total, not twice. A Postgraduate Loan is repaid on top, at 6% over £21,000.
On £40,000 with Plan 2 and a Postgraduate Loan, that is £955.35 plus £1,140.00 a year: £174.61 a month.
How repayments are collected
Your employer takes repayments through payroll, worked out on each payday's pay before tax. If your pay goes up and down, you can repay in a high month even if your yearly pay is under the threshold; you can ask the Student Loans Company for a refund. Self-employed people repay through Self Assessment.
Bottom line
Repayments depend on what you earn, not on what you owe, so most people's monthly payment only changes when their pay does.
Tips
- Not sure which plan you are on? Sign in to your student loan account on GOV.UK: it shows your plan and balance.
- If you repaid in a month when your yearly pay was under the threshold, you can ask the Student Loans Company for a refund.
- Check your payslip shows the right plan. The wrong one can mean repaying too much or too little.
This guide explains the rules; it is not personal financial advice.