UK Finance Planning

Student loan repayment thresholds 2026/27

In 2026/27 you repay 9% of income above £26,900 on Plan 1, £29,385 on Plan 2, £33,795 on Plan 4 (Scotland) and £25,000 on Plan 5, plus 6% above £21,000 for a Postgraduate Loan.

See student loan deductions on your pay

Thresholds by plan

Repayments are taken through payroll and based on earnings above the threshold, not on the amount you owe.

  • Plan 1: 9% above £26,900
  • Plan 2: 9% above £29,385
  • Plan 4 (Scotland): 9% above £33,795
  • Plan 5: 9% above £25,000
  • Postgraduate Loan: 6% above £21,000

Worked example

On a £40,000 salary with a Plan 2 loan, the yearly repayment is about £955 (9% of £10,615).

Considerations to explore

Salary sacrifice lowers the pay used for student loan repayments, while net pay and relief at source pension contributions do not.

Methodology, assumptions and limitations

  • Figures are the 2026/27 rates held in the same tax settings that power every calculator on this site.
  • Assumes a standard 1257L tax code unless stated otherwise.
  • General educational information, not regulated financial or tax advice.
  • Your own position depends on your full circumstances — check GOV.UK or HMRC for your case.

UK Finance Planning provides calculation and planning tools for education and comparison. It is not a financial adviser, is not authorised by the Financial Conduct Authority, and is unconnected to any similarly named advice firm. All results are estimates.

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