Student loan repayments explained: plans and monthly amounts

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Student loan repayments come out of your pay automatically once your income passes a set threshold, so many people never see them as a single bill. That makes them easy to misjudge. This guide explains how repayments are calculated for the 2026/27 tax year (6 April 2026 to 5 April 2027), what each plan threshold means, how interest is applied and how to work out a monthly figure. Figures checked against GOV.UK on 15 October 2026.

Par Valtrinity. Mis à jour le 18 octobre 2026.

How repayments are calculated

Repayments are based on your income, not on the size of your loan. For each plan, there is a threshold. Income above that threshold is charged at a fixed rate, and nothing is charged on the part below it. The amount is worked out on each pay period, usually monthly, and deducted through payroll along with income tax and National Insurance.

For most plans the rate is 9 per cent of income above the threshold. Postgraduate loans are charged at 6 per cent above their own, lower threshold. You can have more than one loan at once, in which case each is calculated separately and the deductions are added together.

• Repayments depend on income above the plan threshold.
• Most plans: 9% of income above the threshold.
• Postgraduate loans: 6% above their threshold.
• Separate loans are calculated separately and added together.

The thresholds for 2026/27

Each plan has its own threshold, which is given both as a yearly figure and as a monthly figure for payroll. For 2026/27 the monthly thresholds are: Plan 1 £2,241, Plan 2 £2,448, Plan 4 £2,816, Plan 5 £2,083 and Postgraduate £1,750. The yearly thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4, £25,000 for Plan 5 and £21,000 for Postgraduate.

Payroll uses the monthly figure, so a payslip should show the deduction as a percentage of the amount above the monthly threshold. If your income changes part way through the year, the deduction changes with it.

• Plan 1: £26,900 a year, £2,241 a month.
• Plan 2: £29,385 a year, £2,448 a month.
• Plan 4: £33,795 a year, £2,816 a month.
• Plan 5: £25,000 a year, £2,083 a month.
• Postgraduate: £21,000 a year, £1,750 a month.

Which plan you are on

The plan depends on where and when you studied, not on the type of course. Plan 1 applies to people who studied in England or Wales before September 2012, and to people in Northern Ireland. Plan 2 applies to England and Wales from September 2012 to July 2023. Plan 4 applies to people who studied in Scotland. Plan 5 applies to people in England who started from August 2023. Postgraduate loans are a separate loan on top of any undergraduate plan.

If you are unsure which plan you have, check your loan statement or your account with the student loans service rather than guessing. The plan determines the threshold and the interest rate, so getting it right matters. Income tax is worked out separately, and the rates are set out in UK income tax bands explained: rates for 2026/27.

• 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 separate loan, which can sit alongside another plan.

Interest rates

Interest is added to the loan balance, and the rate depends on the plan. Plans 1, 4 and 5 are charged at 4.1 per cent. Postgraduate loans are charged at 6 per cent. Plan 2 is different: its rate moves with income, from 4.1 per cent at lower incomes up to 6 per cent at higher incomes.

Interest does not change how much you repay each month, but it does change how much you owe in total. Repayments are based on income, so a higher balance may take longer to clear, and any balance left after the set term may be written off.

• Plans 1, 4 and 5: 4.1%.
• Postgraduate: 6%.
• Plan 2: from 4.1% up to 6%, depending on income.

Worked example: Plan 1 on £33,000

Take a Plan 1 borrower earning £33,000 a year. Monthly income is £2,750. The threshold is £2,241, so the amount above it is £509 (£2,750 minus £2,241). Nine per cent of £509 is £45.81, so the monthly deduction is about £45.

If the same person also has a Postgraduate loan, that is calculated separately. At £30,000 a year, a Plan 2 borrower with a postgraduate loan pays £4.68 under Plan 2 (9% of the £52 above the £2,448 threshold) and £45 under the postgraduate loan (6% of the £750 above the £1,750 threshold). The total is £49.68 a month.

• Plan 1 on £33,000: about £45 a month.
• Plan 2 plus Postgraduate on £30,000: £49.68 a month in total.

Checking your own figure

To estimate your own repayment, find your plan, divide your gross annual income by 12, subtract the monthly threshold, and multiply any positive amount by the rate. Repeat for each loan you hold. The student loan repayment calculator on Valtrinity does this for you, and it is worth running it again after a pay rise or a change in hours.

The estimate is based on gross pay before any pension contributions. Check your payslip for the actual deduction, because pay schedules and rounding can cause small differences.

• Divide annual income by 12.
• Subtract the monthly threshold for your plan.
• Multiply any positive amount by the rate.

Sources

Figures for the 2026/27 tax year, checked against the GOV.UK pages below on 15 October 2026.

• GOV.UK, Repaying your student loan, what you pay: https://www.gov.uk/repaying-your-student-loan/what-you-pay

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