Student loan repayments 2026/27
Student loan repayments come out of your pay alongside income tax and National Insurance — 9% of everything above your plan's threshold (6% for the Postgraduate loan), so they reduce take-home pay by a fixed slice rather than by a fixed amount. Plans stack: an undergraduate loan plus a Postgraduate loan means both are deducted.
2026/27 thresholds and rates
| Plan | Annual threshold | Rate | Monthly threshold |
|---|---|---|---|
| Plan 1 | £26,900 | 9% | £2,241.66 |
| Plan 2 | £29,385 | 9% | £2,448.75 |
| Plan 4 | £33,795 | 9% | £2,816.25 |
| Plan 5new from April 2026 | £25,000 | 9% | £2,083.33 |
| Postgraduate | £21,000 | 6% | £1,750.00 |
Thresholds and rates from the GOV.UK rates page for 2026 to 2027. Repayment is 9% (6% for Postgraduate) of income above the threshold, applied per pay period and rounded down to whole pounds.
What plans cost at common salaries
| Gross | Plan 2 | Plan 5 | Postgraduate | Take-home (Plan 5) |
|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £240.00 | £21,519.60 |
| £30,000 | £55.35 | £450.00 | £540.00 | £25,119.60 |
| £35,000 | £505.35 | £900.00 | £840.00 | £28,719.60 |
| £40,000 | £955.35 | £1,350.00 | £1,140.00 | £32,319.60 |
Plan 5 repaid 9% above £25,000 from April 2026 — see £30,000 after tax for the full scenario table, or £35,000.