How it works
Choose your loan plan, enter your annual gross income (or salary), and we apply the 2026/27 threshold and the 9% (or 6% Postgraduate) repayment rate in your browser.
In detail
You repay 9% of your income above the threshold for Plan 1, 2, 4 and 5 loans, and 6% for a Postgraduate loan. Repayments are taken automatically through PAYE (from your salary) or Self Assessment if you are self-employed, and they stop completely in any tax year your income falls below the threshold.
2026/27 repayment thresholds
| Plan | Threshold (annual) | Rate above |
|---|---|---|
| Plan 1 (pre-2012) | £26,900 | 9% |
| Plan 2 (2012–2023) | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 (from 2023) | £25,000 | 9% |
| Postgraduate loan | £21,000 | 6% |
The thresholds are applied to your gross income (before tax). If you have both an undergraduate and a Postgraduate loan, both deductions can apply at the same time. The authoritative source is GOV.UK — Repaying your student loan.
FAQ
How much do I repay on a Plan 2 loan in 2026/27?
9% of your income above £29,385. For example, on a £40,000 salary that is 9% of £10,615 = £955.35 a year, or about £79.61 a month.
What is the Plan 5 threshold?
Plan 5 loans (taken out from 2023) have a lower threshold of £25,000, with the same 9% rate above it.
Do repayments stop if I lose my job?
Yes. Repayments are based on your income in each tax year, so if your income drops below the threshold the deduction stops.
How is a Postgraduate loan different?
A Postgraduate Master's or Doctoral loan is repaid at 6% of income above £21,000, and can run alongside an undergraduate plan.