Student loans2 min read · Updated 19 October 2026
Student loan plans explained: Plan 1, 2, 4, 5 and postgraduate
Which student loan plan you are on, the 2026/27 repayment thresholds, and how much comes out of your pay.
Which plan are you on
Plan 1: England and Wales before September 2012, and Northern Ireland. Plan 2: England and Wales from September 2012 to July 2023. Plan 4: Scotland. Plan 5: England from August 2023. Postgraduate: a master's or doctoral loan, taken alongside your other plan.
Thresholds and rates
| Plan 1 | £26,900 a year, 9% above it |
| Plan 2 | £29,385 a year, 9% above it |
| Plan 4 | £33,795 a year, 9% above it |
| Plan 5 | £25,000 a year, 9% above it |
| Postgraduate loan | £21,000 a year, 6% above it |
How it comes out of your pay
Your employer takes it with tax, so you never see it. It stops if your pay drops below the threshold. If you work for yourself, you pay through your Self Assessment return.
Write-off
Plan 2 loans are written off 30 years after the April you were first due to repay, and Plan 5 loans after 40 years. Because many people never repay in full, extra payments often do not help. Check your own balance and plan before paying extra.
Common questions
How much student loan do I repay?
9% of pay above your plan threshold, or 6% for a postgraduate loan.
Do I repay if I earn under the threshold?
No. Repayments stop when pay falls below it.
Should I overpay my student loan?
Only if you expect to clear it before write-off. Many people on Plan 2 and Plan 5 will not, so check first.