Student Loan Repayment Thresholds 2026/27

Plan	Threshold	Rate	Written Off
Plan 1	£26,900	9%	25 years after the April you were first due to repay (age 65 if your first loan was paid before Sept 2006)
Plan 2	£29,385	9%	30 years after the April you were first due to repay
Plan 4	£33,795	9%	30 years after the April you were first due to repay (Scotland)
Plan 5	£25,000	9%	40 years after the April you were first due to repay
Postgraduate	£21,000	6%	30 years after the April you were first due to repay (England and Wales)

How Student Loan Repayments Work

You only repay when you earn above the threshold. Repayments are 9% of income above the threshold (6% for postgraduate loans). If you earn under the threshold, you pay nothing. Repayments are deducted from your pay like tax.

For example, on Plan 2 with a £35,000 salary: you earn £5,615 above the 2026/27 threshold of £29,385, so you repay 9% × £5,615 = £505 per year (£42/month).

Will My Student Loan Be Written Off?

Yes. Outstanding balances are written off after the write-off period. Most Plan 2 graduates will never fully repay — it works more like a graduate tax than a traditional loan. Use our salary calculator to see your full take home pay including student loan deductions.