Answers · UK 2025/26
What is the Plan 1 student loan repayment threshold in 2026/27?
The Plan 1 student loan repayment threshold for 2026/27 is £26,065 per year (£2,172/month). You repay 9% of income above this threshold. Plan 1 applies to English and Welsh students who started before September 2012, and Scottish students.
Full answer
**Which loans are Plan 1?** Plan 1 applies to: - English and Welsh students who started undergraduate courses before 1 September 2012 - Scottish and Northern Irish students (all undergrad loans) Students who started from September 2012 in England and Wales are on Plan 2. New English students from 2023/24 are on Plan 5. **2026/27 Plan 1 threshold** - Annual threshold: **£26,065** - Monthly threshold: **£2,172** - Weekly threshold: **£501** Thresholds are adjusted each April by RPI inflation (or as set by regulations). **Repayment rate** You repay **9%** of income above the threshold, via PAYE deduction if employed. **Example: Sarah, Plan 1 borrower** Sarah earns £35,000/year. - Income above threshold: £35,000 − £26,065 = £8,935 - Annual repayment: 9% × £8,935 = **£804/year** (£67/month) **Interest on Plan 1** Plan 1 charges the lower of RPI or Bank of England base rate + 1%. This is historically low — currently around 4.3% (RPI, June 2026 estimate — check official figure). Interest accrues from the day after graduation. **Write-off date** Plan 1 loans are written off 25 years after the April following graduation (or when you turn 65 if sooner). For someone graduating in 2010, write-off would be April 2036. **Multiple plans** If you have both Plan 1 and Plan 2 loans (e.g. undergraduate Plan 1, postgraduate Plan 3), separate repayments apply to each. The Postgraduate Loan (Plan 3) threshold is £21,000; repayment rate 6%.
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.