UK Student Loan Repayment Plans: Plan 1, 2, 4, 5 & Postgraduate Compared

Student loan repayments in the UK operate like a graduate payroll tax. Deductions are calculated automatically by your employer through the PAYE system once your earnings surpass the specific threshold for your repayment plan.

2026/27 Student Loan Thresholds & Rates

• Plan 1: Threshold £24,990 / year (9% repayment rate)
• Plan 2: Threshold £27,295 / year (9% repayment rate)
• Plan 4 (Scotland): Threshold £31,395 / year (9% repayment rate)
• Plan 5: Threshold £25,000 / year (9% repayment rate)
• Postgraduate: Threshold £21,000 / year (6% repayment rate)