Glossary · UK
What is Plan 5 Student Loan?
UK student loan plan for English students starting from 2023 — 40-year repayment window.
Full Definition
Plan 5 is the UK student loan scheme for English students starting higher education from September 2023 onwards. Repayment threshold is £25,000 (lower than Plan 2's £28,470). Rate is 9% of income above threshold. Crucially, write-off is at 40 YEARS after April after graduation (vs 30 years for Plan 2). This means most Plan 5 graduates will repay in full, effectively a lifelong 9% «graduate tax». Interest is fixed at RPI (no RPI+3% banding like Plan 2).
Related Calculators
Read More
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.