Student Loan Repayment Guide 2026/27: Plan 1, 2, 4 & 5 Explained
Understand how much you will repay on your student loan in 2026/27. Detailed breakdown of payment thresholds for Plan 1, 2, 4, 5 and Postgraduate loans.
Student Loan Repayment Guide 2026/27
Repaying your student loan can often feel like a hidden tax. Unlike a commercial loan, what you repay is tied strictly to how much you earn, not your total outstanding balance.
At My Take Home Salary, we keep your figures accurate with the confirmed thresholds for the 2026/27 tax year.
Which Plan Am I On?
- Plan 1: You started an undergraduate course before 1 September 2012 (England/Wales) or you are from Northern Ireland.
- Plan 2: You started an undergraduate course between 1 September 2012 and 31 July 2023 (England/Wales).
- Plan 4: You applied via SAAS (Scotland).
- Plan 5: You started an undergraduate course on or after 1 August 2023 (England).
- Postgraduate: You are repaying a Master's or Doctoral loan (England/Wales).
Payment Thresholds for 2026/27
You only begin repaying when your earnings exceed the annual threshold. You repay 9% of any income above the threshold for undergraduate plans (or 6% for Postgraduate loans).
| Plan | Annual Threshold | Monthly Threshold | Repayment Rate |
|---|---|---|---|
| Plan 1 | £26,900 | £2,241.67 | 9% |
| Plan 2 | £29,385 | £2,448.75 | 9% |
| Plan 4 | £33,795 | £2,816.25 | 9% |
| Plan 5 | £25,000 | £2,083.33 | 9% |
| Postgrad | £21,000 | £1,750.00 | 6% |
Worked Example: Plan 2 Repayments
Suppose you are on Plan 2 and earn a gross salary of £35,000 a year:
- Plan 2 Threshold: £29,385
- Earnings above threshold: £35,000 - £29,385 = £5,615
- Annual Repayment (9%): 9% of £5,615 = £505.35 per year
- Monthly Deductions: £42.11 per month deducted automatically via PAYE.
Can I Have Multiple Loans?
Yes. If you have both an Undergraduate loan (e.g. Plan 2) and a Postgraduate loan, deductions are made concurrently:
Using the £35,000 salary example:
- Plan 2 Repayment: £505.35 / year
- Postgrad Repayment: 6% of (£35,000 - £21,000) = £840.00 / year
- Total Annual Loan Deductions: £1,345.35 (£112.11 / month)
When Are Student Loans Written Off?
Cancellation policies depend on your plan:
- Plan 1: Age 65 or 25 years after graduation (depending on course start year).
- Plan 2: 30 years after the April following graduation.
- Plan 4: 30 years after graduation or at age 65.
- Plan 5: 40 years after the April following graduation.
- Postgraduate: 30 years after the April following course completion.
Calculate Your Exact Take-Home Pay
To see exactly how student loans, Income Tax, and National Insurance affect your take-home pay, use our interactive Salary Calculator and select your plan under the Student Loan dropdown.