Answers · UK 2025/26
What is the student loan repayment threshold in 2026/27?
In 2026/27 you start repaying your student loan once you earn over the threshold for your plan: Plan 1 (£24,990/year), Plan 2 (£28,470/year), Plan 4 Scotland (£32,745/year), Plan 5 (£25,000/year), Postgraduate Loan (£21,000/year). Repayments are 9% of income above the threshold (15% for Postgrad).
Full answer
Student loan repayments in the UK are income-contingent — you only repay once you earn above the threshold, and the debt is eventually written off. There are now five main plans. **2026/27 repayment thresholds and rates:** | Plan | Who it covers | Threshold | Rate | Write-off | |---|---|---|---|---| | Plan 1 | Started before Sept 2012 (England/Wales); Scotland/NI pre-2007 | £24,990/yr | 9% above threshold | Age 65 or 25 years | | Plan 2 | Started Sept 2012–July 2023 (England/Wales) | £28,470/yr | 9% above threshold | 30 years from April after leaving | | Plan 4 | Scottish students (most years) | £32,745/yr | 9% above threshold | Age 65 or 30 years | | Plan 5 | Started Aug 2023+ (England) | £25,000/yr | 9% above threshold | 40 years from April after leaving | | Postgraduate Loan | Masters/PhD (England/Wales) | £21,000/yr | 6% above threshold | 30 years from April after leaving | **Note:** Plan 1 and Plan 2/4/5 repayments can run simultaneously (up to 15% total if also on Postgrad). **Worked example (Plan 2, £35,000 salary):** £35,000 − £28,470 = £6,530 above threshold. Repayment: 9% × £6,530 = **£587.70/year (£48.98/month)**. **Interest rates (2026/27):** - **Plan 1:** Bank of England base rate + 1% (or RPI, whichever is lower) - **Plan 2:** RPI + 0% to 3% depending on income (£28,470 = RPI; £49,130+ = RPI+3%) - **Plan 5:** RPI for all repayers - **Postgraduate:** RPI + 3% **Working abroad:** You must still repay if working abroad. The Student Loans Company sets income-based overseas repayment thresholds based on the country you live in. Failure to repay triggers surcharges. **Voluntary repayments:** You can overpay at any time without penalty — but overpaying is rarely financially optimal for Plan 2 or Plan 5 borrowers who are unlikely to repay in full before write-off.
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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.