Written and reviewed by James Whitfield · Updated for 2026/27 · Editorial standards · Methodology
The salary at which student loan repayments start in 2026/27 for every plan, as yearly, monthly and weekly thresholds, with what you repay at salaries from £25,000 to £60,000, how payroll deducts it, and the Plan 2 freeze from April 2027.
For 2026/27 student loan repayments start above £26,900 on Plan 1, £29,385 on Plan 2, £33,795 on Plan 4 (Scotland), £25,000 on Plan 5 and £21,000 on the Postgraduate Loan1. You repay 9% of income above the threshold (6% for the Postgraduate Loan). On £35,000 a Plan 2 borrower repays £505.35 a year, about £42.11 a month. The Plan 2 threshold is frozen from April 20272.
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Typical default outputs for quick context.
You repay a student loan only on income above your plan's threshold: 9% for undergraduate plans and 6% for the Postgraduate Loan1. The thresholds below apply from 6 April 2026 to 5 April 2027. Payroll applies them per pay period, so the monthly and weekly figures are what your employer actually uses.
| Plan | Yearly | Monthly | Weekly | Rate | Who is on it |
|---|---|---|---|---|---|
| Plan 1 | £26,900 | £2,241.67 | £517.31 | 9% | England or Wales, course started before 1 September 2012; all Northern Ireland borrowers |
| Plan 2 | £29,385 | £2,448.75 | £565.10 | 9% | England or Wales, course started 1 September 2012 to 31 July 2023 |
| Plan 4 | £33,795 | £2,816.25 | £649.90 | 9% | Scotland (SAAS-funded students) |
| Plan 5 | £25,000 | £2,083.33 | £480.77 | 9% | England, course started on or after 1 August 2023 |
| Postgraduate Loan | £21,000 | £1,750.00 | £403.85 | 6% | Master's or doctoral loan from England or Wales |
GOV.UK rounds the monthly and weekly figures down to whole pounds on its summary page; payroll software uses the exact pro-rata threshold.
Repayments are 9% of the slice above the threshold, so they are small just above it and grow steadily. On £35,000 a Plan 2 borrower repays £505.35 a year, about £42.11 a month, which takes monthly take-home in England from £2,393.30 to £2,351.19. A Plan 5 borrower on the same salary repays £900.00, because the Plan 5 threshold is lower.
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgraduate |
|---|---|---|---|---|---|
| £25,000 | £0 | £0 | £0 | £0 | £240 (£20/mo) |
| £28,000 | £99 (£8/mo) | £0 | £0 | £270 (£22/mo) | £420 (£35/mo) |
| £30,000 | £279 (£23/mo) | £55 (£5/mo) | £0 | £450 (£38/mo) | £540 (£45/mo) |
| £35,000 | £729 (£61/mo) | £505 (£42/mo) | £108 (£9/mo) | £900 (£75/mo) | £840 (£70/mo) |
| £40,000 | £1,179 (£98/mo) | £955 (£80/mo) | £558 (£47/mo) | £1,350 (£112/mo) | £1,140 (£95/mo) |
| £50,000 | £2,079 (£173/mo) | £1,855 (£155/mo) | £1,458 (£122/mo) | £2,250 (£188/mo) | £1,740 (£145/mo) |
| £60,000 | £2,979 (£248/mo) | £2,755 (£230/mo) | £2,358 (£197/mo) | £3,150 (£262/mo) | £2,340 (£195/mo) |
Unlike income tax, student loan deductions are not cumulative across the year. Each payslip is checked on its own against the monthly or weekly threshold. On a £35,000 salary paid monthly (£2,916.67), Plan 2 takes about £42 a month; in a month with a £3,000 bonus it takes about £312. Someone earning below the yearly threshold overall can still have money deducted in a month with overtime or a bonus.
If your total income for the year ends up below the threshold, the Student Loans Company refunds the over-deduction after the year end, usually on request.
Any balance left is cancelled after a set period: Plan 1 after 25 years (or at 65 for older loans), Plan 2 and Plan 4 after 30 years, Plan 5 after 40 years and the Postgraduate Loan after 30 years, counted from the April after you were first due to repay1.
The Plan 2 threshold will be frozen at £29,385 for three years from April 2027, rather than rising with earnings, following the November 2025 Budget2. As pay rises, more of it will be above the threshold, so Plan 2 repayments will grow faster than salaries over that period.
Current tax-year thresholds used across this guide and calculator.
Above £26,900 on Plan 1, £29,385 on Plan 2, £33,795 on Plan 4, £25,000 on Plan 5 and £21,000 on the Postgraduate Loan. You only repay on the part of your income above the threshold.
£2,448.75 a month (£29,385 divided by 12) for 2026/27. Payroll deducts 9% of pay above that each month.
In 2026/27: £729.00 a year on Plan 1, £505.35 on Plan 2, £108.45 on Plan 4, £900.00 on Plan 5, and £840.00 on a Postgraduate Loan.
Yes, from April 2027. The November 2025 Budget froze the Plan 2 threshold at £29,385 for three years instead of uprating it each April.
Deductions are checked against each pay period on its own, not the whole year. A month with overtime or a bonus can go over the monthly threshold. If your income for the whole year is below the yearly threshold you can ask the Student Loans Company for a refund.
Yes. You pay 9% above your undergraduate plan threshold and 6% above £21,000 for the Postgraduate Loan, both through payroll.
The rates, thresholds and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC or GOV.UK page in a new tab.
Verified against published UK government guidance for 2026/27.