Student Loan Repayment Guide 2025/26: Plan 1, 2, 4 & 5 Explained
Understand how much you will repay on your student loan in 2025/26. Detailed breakdown of payment thresholds for Plan 1, 2, 4, 5 and Postgraduate loans.
Student Loan Repayment Guide 2025/26
Repaying your student loan can often feel like a hidden tax. Unlike a regular loan, what you pay back is tied strictly to how much you earn, not how much you owe.
At My Take Home Salary, we want to simplify the confusion around the different "Plans". Here is everything you need to know for the 2025/26 tax year.
Which Plan Am I On?
- Plan 1: You started your course before 1 September 2012 (England/Wales) or you are from Northern Ireland.
- Plan 2: You started your course between 1 September 2012 and 31 July 2023 (England/Wales).
- Plan 4: You applied to SAAS (Scotland).
- Plan 5: You started your course after 1 August 2023 (England).
- Postgraduate: You are repaying a Master's or Doctoral loan.
Payment Thresholds for 2025/26
You only start repaying when your income goes above the threshold. You pay 9% of anything you earn above this amount (or 6% for Postgraduate loans).
| Plan | Annual Threshold | Monthly Threshold | Repayment Rate |
|---|---|---|---|
| Plan 1 | £24,990 | £2,082 | 9% |
| Plan 2 | £27,295 | £2,274 | 9% |
| Plan 4 | £31,395 | £2,616 | 9% |
| Plan 5 | £25,000 | £2,083 | 9% |
| Postgrad | £21,000 | £1,750 | 6% |
Example Calculation (Plan 2)
Let’s say you are on Plan 2 and you earn £35,000 a year.
- Threshold: £27,295
- Earnings above threshold: £35,000 - £27,295 = £7,705
- Repayment (9%): 9% of £7,705 = £693.45 per year
That works out to roughly £57.78 per month deducted automatically from your payslip.
Can I Have Two Plans?
Yes. If you have a Postgraduate loan and an Undergraduate loan (e.g., Plan 2), you pay both.
Using the example above (£35k salary):
- Plan 2 Repayment: £693.45 / year
- Postgrad Repayment: 6% of (£35,000 - £21,000) = £840.00 / year
- Total Annual Repayment: £1,533.45
When Is It Written Off?
This depends heavily on when you started your course, but generally:
- Plan 1: Age 65 or 25 years after graduation.
- Plan 2: 30 years after the April you were first due to repay.
- Plan 5: 40 years after the April you were first due to repay.
Need to calculate your exact take-home pay?
Use our Salary Calculator to see exactly how these deductions affect your monthly wage.