UK Student Loan Repayment Thresholds Explained: Plan 1, 2, 4, 5 and Postgraduate (2026/27)

How the repayment mechanic works

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).

Same salary, five different deductions

The plan matters as much as the salary. Applying the gov.uk thresholds and rates above to one salary — £36,000 a year, or £3,000 a month — produces five different monthly deductions:

Plan	Monthly threshold	Income over threshold	Rate	Monthly repayment
Plan 1	£2,241	£759	9%	£68.31
Plan 2	£2,448	£552	9%	£49.68
Plan 4	£2,816	£184	9%	£16.56
Plan 5	£2,083	£917	9%	£82.53
Postgraduate	£1,750	£1,250	6%	£75.00

Each row is the same arithmetic as HMRC's example: monthly pay minus the monthly threshold, times the plan's rate. £3,000 − £2,083 = £917; 9% of £917 = £82.53 for Plan 5, against £16.56 for a Plan 4 borrower on identical pay — a fivefold gap driven entirely by the threshold. Over a full year at this salary, Plan 5 collects £990.36 (£82.53 × 12) while Plan 4 collects £198.72.

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Close to the threshold: £27,000 a year

At £27,000 (£2,250 a month) the picture inverts — some plans deduct nothing at all:

• Plan 1: £2,250 − £2,241 = £9 over; 9% of £9 = £0.81 a month.
• Plan 2: £2,250 sits below the £2,448 monthly threshold — no repayment.
• Plan 4: below the £2,816 monthly threshold — no repayment.
• Plan 5: £2,250 − £2,083 = £167 over; 9% of £167 = £15.03 a month.
• Postgraduate Loan: £2,250 − £1,750 = £500 over; 6% of £500 = £30.00 a month.

A Plan 2 and a Plan 5 graduate on the same £27,000 salary differ by £15.03 a month purely because Plan 5's threshold is £4,385 a year lower (£29,385 − £25,000).

Stacked plans at £40,000: the 15% slice

The two-loan mechanic scales with income. A borrower holding a Plan 5 loan and a Postgraduate Loan on £40,000 a year repays against both thresholds:

• Plan 5: £40,000 − £25,000 = £15,000 over the threshold; 9% of £15,000 = £1,350 a year.
• Postgraduate Loan: £40,000 − £21,000 = £19,000 over the threshold; 6% of £19,000 = £1,140 a year.
• Combined: £1,350 + £1,140 = £2,490 a year, or £207.50 a month.

Once income clears both thresholds, every additional pound carries the two rates together: 9% + 6% = 15p of each extra £1 earned goes to loan repayments, before Income Tax and National Insurance are counted. The tax calculator stacks all of these deductions for a given salary and plan combination.

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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).