Answers · UK 2025/26
When do you start repaying a student loan in 2026?
You start repaying once your income passes the plan threshold: £29,385 a year on Plan 2 and £25,000 on Plan 5 for 2026/27. You repay 9% of income above the threshold, collected automatically through PAYE or Self Assessment.
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Student loan repayments begin only once your income rises above your plan threshold for the 2026/27 tax year. Plan 2 (most English and Welsh students who started 2012–2023) has a threshold of £29,385; Plan 5 (English students starting from August 2023) has a threshold of £25,000. Both charge 9% of income above the threshold. Postgraduate loans are separate, charged at 6% above £21,000. Repayments are taken automatically through PAYE if you are employed, or via Self Assessment if self-employed, and stop once the balance is cleared or the loan is written off (40 years after the April you were due to start repaying, on Plan 5). Worked example: a Plan 5 graduate earning £30,000 is £5,000 over the £25,000 threshold, repaying 9% × £5,000 = £450 a year, about £37.50 a month. A Plan 2 graduate earning the same £30,000 is only £615 over the £29,385 threshold, repaying just £55 a year. Crucially, you only repay while your income exceeds the threshold — drop below it and repayments pause automatically. The thresholds apply UK-wide. Use the Take-Home Pay calculator with the student loan option to see the effect on your net pay.
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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.