Answers · UK 2025/26

How do I know if I am on Plan 2 or Plan 5 student loan repayment terms?

Which repayment plan you are on depends on WHEN you started your course, not your income level. English/Welsh undergraduates who started before August 2023 are generally on Plan 2 (threshold around £28,470); those who started their course from August 2023 onwards are on Plan 5 (lower threshold, around £25,000), which also has a much longer 40-year write-off period.

Last updated: 1 July 2026Last reviewed: 1 July 2026How we verify

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A common misconception is that Plan 2 vs Plan 5 depends on how much you earn -- in fact, it is determined entirely by when you started your undergraduate course, and the two plans have meaningfully different repayment thresholds and write-off periods. **Plan 2 -- pre-August 2023 starters** If you started an undergraduate course in England or Wales before 1 August 2023, you are on Plan 2. The repayment threshold is uprated periodically (broadly in the high £20,000s for recent years) and you repay 9% of income above that threshold. Plan 2 loans are written off 30 years after you become eligible to start repaying, regardless of how much remains outstanding. **Plan 5 -- August 2023 onwards starters** If you started your undergraduate course from 1 August 2023 onwards, you are on Plan 5 instead. Plan 5 has a notably LOWER repayment threshold (around £25,000, frozen for longer rather than uprated with inflation), meaning borrowers on Plan 5 start repaying, and repay more per year at the same income level, sooner than an equivalent Plan 2 borrower. However, Plan 5 also has a much longer 40-year write-off period (compared with 30 years for Plan 2), and a lower headline interest rate structure (tied to RPI without the previous income-based additional interest tiers that applied under Plan 2 for higher earners). **Why the distinction matters financially** Because Plan 5's threshold is lower and frozen, more of your income is subject to the 9% repayment rate earlier in your career compared with an equivalent Plan 2 borrower -- but the extended 40-year term and different interest structure mean the overall lifetime cost comparison is complex and depends heavily on individual career earnings trajectory. Someone with modest lifetime earnings may end up repaying LESS in total under Plan 5 (because more debt is written off after 40 years even though annual repayments started earlier), while a high, steadily rising earner might repay MORE in total under Plan 5's lower threshold before any write-off becomes relevant. **Worked example** Two graduates both earn £32,000. One started university in 2022 (Plan 2, threshold roughly £28,470): their repayment is 9% x (£32,000 − £28,470) = £317.70 a year. The other started in 2023 (Plan 5, threshold £25,000): their repayment is 9% x (£32,000 − £25,000) = £630 a year -- nearly double, purely because of which plan applies to their course start date, despite identical income. **How to check which plan applies to you** Check your Student Finance England or Student Finance Wales account, which will state your plan type explicitly, or check your P60/payslip, which should show the plan type your employer is using for deductions. If you have loans from multiple periods of study (e.g. an undergraduate loan plus a later postgraduate loan), you may be repaying under more than one plan type simultaneously, with separate thresholds and calculations for each.