How student loan repayments work
You repay 9% of everything you earn above your plan’s threshold (6% for a Postgraduate Loan) — not 9% of your whole salary. It’s collected automatically through PAYE, like tax. Earn below the threshold and you repay nothing that period.
2026/27 annual thresholds
Plan 1: £26,900 · Plan 2: £29,385 · Plan 4 (Scotland): £33,795 · Plan 5: £25,000 · Postgraduate: £21,000. Plans 1, 2, 4 and 5 repay at 9%; the Postgraduate Loan at 6%.
Which plan am I on?
Plan 2 covers most English & Welsh students who started a degree 2012–2022; Plan 5 is for courses starting from August 2023; Plan 1 is older loans; Plan 4 is for Scottish borrowers. You can check your plan in your online student loan account.
Frequently asked questions
Is the 9% taken from my whole salary?
No — only from the part above your threshold. On Plan 2 (£29,385) earning £35,000, you repay 9% of £5,615 ≈ £505 a year, about £42 a month.
What if I have a postgraduate loan too?
A Postgraduate Loan repays 6% above £21,000 and runs alongside an undergraduate plan, so the two deductions are added together in your payslip.
Does the loan ever get written off?
Yes — any balance left is cancelled after your plan’s write-off period (for example 40 years for Plan 5). The exact period depends on your plan and when you started.