UK Student Loan Repayment Thresholds Explained: Plan 1, 2, 4, 5 and Postgraduate (2026/27)
UK student loan repayments are 9% of income over your plan's threshold (6% for Postgraduate Loans) — with thresholds from £21,000 to £33,795 depending on plan (gov.uk). Here are the current thresholds, the rates, and HMRC's worked examples including holding two loans at once.
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UK student loan repayments are collected as a slice of income above a threshold, not as a fixed monthly bill. You'll repay either: 9% of your income over the threshold if you're on Plan 1, 2, 4 or 5 (gov.uk), or 6% of your income over the threshold if you're on a Postgraduate Loan plan (gov.uk).
Income below the threshold triggers no repayment at all — the loan simply sits there.
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The thresholds by plan
The gov.uk thresholds table for the current year:
- Plan 1 — £26,900 a year (£2,241 a month, £517 a week) (gov.uk).
- Plan 2 — £29,385 a year (£2,448 a month, £565 a week) (gov.uk).
- Plan 4 — £33,795 a year (£2,816 a month, £649 a week) (gov.uk).
- Plan 5 — £25,000 a year (£2,083 a month, £480 a week) (gov.uk).
- Postgraduate Loan — £21,000 a year (£1,750 a month, £403 a week) (gov.uk).
HMRC's worked example — one plan
The gov.uk page walks the arithmetic for a single-plan borrower:
- You're on Plan 1 and have an income of £33,000 a year, meaning you get paid £2,750 each month (gov.uk).
- £2,750 – £2,241 (your income minus the Plan 1 threshold) = £509 (gov.uk).
- 9% of £509 = £45.81 (gov.uk).
The repayment responds to pay, month by month — a month above the threshold triggers a deduction, a month below does not.
Holding two loans at once
A borrower can owe under two plans simultaneously — commonly an undergraduate plan plus a Postgraduate Loan. The rates then apply in parallel against each threshold. The gov.uk example:
- You have a Postgraduate Loan and a Plan 2 loan and have an income of £30,000 a year, meaning you get paid £2,500 each month (gov.uk).
- £2,500 – £1,750 (your income minus the Postgraduate Loan threshold) = £750. 6% of £750 = £45 (gov.uk).
- £2,500 – £2,448 (your income minus the Plan 2 threshold) = £52. 9% of £52 = £4.68 (gov.uk).
The two deductions run side by side against their own thresholds — the £1,750 monthly Postgraduate Loan threshold (gov.uk) sits well below the £2,448 monthly Plan 2 threshold (gov.uk).
A note on scope
This page covers the published repayment rules: the 9% rate for Plan 1, 2, 4 and 5 (gov.uk), the 6% Postgraduate Loan rate (gov.uk), and the per-plan thresholds from £21,000 to £33,795 (gov.uk).
Interest rates, write-off dates, and voluntary overpayment rules sit outside this page's scope. UK Calculator provides information and tools, not regulated financial advice — anyone weighing overpayment against other uses of money should consult a regulated financial adviser.
Frequently asked questions
What percentage of income goes to student loan repayments?
9% of your income over the threshold if you're on Plan 1, 2, 4 or 5 (gov.uk), or 6% of your income over the threshold if you're on a Postgraduate Loan plan (gov.uk).
What is the Plan 2 threshold?
Plan 2 — £29,385 a year (£2,448 a month, £565 a week) (gov.uk).
What is the Plan 5 threshold?
Plan 5 — £25,000 a year (£2,083 a month, £480 a week) (gov.uk).
What does a Plan 1 borrower on £33,000 repay?
£2,750 – £2,241 (your income minus the Plan 1 threshold) = £509 (gov.uk); 9% of £509 = £45.81 a month (gov.uk).
Do I repay on income below the threshold?
No — repayments are charged only on income over your plan's threshold (gov.uk).
Can I owe under two plans at the same time?
Yes — for example a Postgraduate Loan alongside a Plan 2 loan, with the 6% and 9% deductions running in parallel against each threshold (gov.uk).
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