# Student loan repayments url: https://whereyourmoneygoes.co.uk/student-loan-repayments/ updated: 29 September 2026 licence: Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). Figures: each source's own licence, listed under Sources. publisher: [Tekstak Ltd](https://tek-stak.co.uk) # Student loan repayments Last updated 29 September 2026. Figures refresh every night. [How each figure is worked out](/methodology/). Graduates repay **9% of income above a threshold**: £29,385 a year on Plan 2 and £25,000 on Plan 5, collected through PAYE like tax. Whatever is left is written off after 30 years on Plan 2 and 40 on Plan 5. The government expects only **32%** of recent Plan 2 borrowers to repay in full, so for most graduates it behaves like an extra 9% tax on earnings for decades, though unlike a tax it stops once the loan is cleared. Figure as of 22 September 2026. Source: [GOV.UK](https://www.gov.uk/repaying-your-student-loan/what-you-pay). ## Key figures - £29,385Plan 2: repay 9% of income above ▲ 2026–27 - £25,000Plan 5: repay 9% of income above The newest plan, for courses from August 2023 2026–27 - 32%Of recent Plan 2 borrowers expected to repay in full Plan 2 full-time starters, 2022/23 As of 22 September 2026 - 6%Top Plan 2 interest rate From 1 September 2026 As of 22 September 2026 Source: [GOV.UK](https://www.gov.uk/repaying-your-student-loan/what-you-pay). ## Which plan are you on, and what do you repay? | Plan | Who is on it | Repay above | A year ago | Rate | Interest | Written off | | --- | --- | --- | --- | --- | --- | --- | | Plan 1Details | England and Wales courses started before 1 September 2012; all Northern Ireland borrowers | £26,900 | £26,065 | 9% | Currently 4.1% | 25 years after the April you were first due to repay (loans first paid before September 2006: at 65) | | Who is on itEngland and Wales courses started before 1 September 2012; all Northern Ireland borrowersA year ago£26,065Rate9%InterestCurrently 4.1%Written off25 years after the April you were first due to repay (loans first paid before September 2006: at 65) | | | | | | | | Plan 2Details | England and Wales undergraduate courses started between 1 September 2012 and 31 July 2023 | £29,385 | £28,470 | 9% | Varies with income: RPI on lower incomes, up to RPI plus 3 points, capped at 6% | 30 years after the April you were first due to repay | | Who is on itEngland and Wales undergraduate courses started between 1 September 2012 and 31 July 2023A year ago£28,470Rate9%InterestVaries with income: RPI on lower incomes, up to RPI plus 3 points, capped at 6%Written off30 years after the April you were first due to repay | | | | | | | | Plan 4Details | Borrowers from Scotland (Student Awards Agency Scotland) | £33,795 | £32,745 | 9% | Currently 4.1% | 30 years after the April you were first due to repay (loans first paid before August 2007: at 65, or 30 years, whichever comes first) | | Who is on itBorrowers from Scotland (Student Awards Agency Scotland)A year ago£32,745Rate9%InterestCurrently 4.1%Written off30 years after the April you were first due to repay (loans first paid before August 2007: at 65, or 30 years, whichever comes first) | | | | | | | | Plan 5Details | England undergraduate courses started on or after 1 August 2023 | £25,000 | — | 9% | Currently 4.1% | 40 years after the April you were first due to repay | | Who is on itEngland undergraduate courses started on or after 1 August 2023A year ago—Rate9%InterestCurrently 4.1%Written off40 years after the April you were first due to repay | | | | | | | | PostgraduateDetails | Master’s and doctoral loans from England and Wales | £21,000 | £21,000 | 6% | Currently 6% | 30 years after the April you were first due to repay | | Who is on itMaster’s and doctoral loans from England and WalesA year ago£21,000Rate6%InterestCurrently 6%Written off30 years after the April you were first due to repay | | | | | | | The Plan 2 threshold is frozen at £29,385 for three years from April 2027, under Budget 2025, where it would normally rise with earnings. Interest rates from 1 September 2026: Plan 2 (lowest incomes) 4.1%, Plan 2 (highest incomes) 6%, Postgraduate 6%, Plan 5 4.1%. Checked 22 September 2026. Source: [GOV.UK](https://www.gov.uk/repaying-your-student-loan/what-you-pay). Checked by hand 22 September 2026. [Work out your take-home pay with student loan repayments](https://howlongisit.co.uk/uk-salary-calculator) ## How do repayments stack on top of income tax? Repayments come out of the same payslip as income tax and National Insurance. For a Plan 2 graduate earning between the threshold and £50,270, the deduction from each extra pound is 37%: 20% income tax, 8% National Insurance and 9% loan. Above £50,270 it is 51%, and in the £100,000 to £125,140 band 71%. See [hidden marginal tax rates](/hidden-marginal-tax-rates/) for the chart. ### What does this mean for you? What would you repay in 2026–27? Enter your yearly pay before tax. Yearly pay £ On £35,000 a year: **£505 a year** on Plan 2 (about £42 a month), or **£900 a year** on Plan 5 (about £75 a month). 9% of pay above £29,385 on Plan 2 and above £25,000 on Plan 5. Employers work it out each pay period, so a year with uneven pay can come out slightly different. What you repay does not depend on how much you borrowed, until the balance is cleared. Figure as of 22 September 2026. Source: [GOV.UK](https://www.gov.uk/repaying-your-student-loan/what-you-pay). ## Is it a graduate tax? | Group | Expected to repay in full | Source | | --- | --- | --- | | All full-time undergraduate starters, 2025/26 (mostly Plan 5)Details | 55% | [DfE, Student loan forecasts for England 2025-26](https://www.gov.uk/government/statistics/student-loan-forecasts-for-england-2025-to-2026) | | Source[DfE, Student loan forecasts for England 2025-26](https://www.gov.uk/government/statistics/student-loan-forecasts-for-england-2025-to-2026) | | | | Plan 2 full-time starters, 2022/23Details | 32% | [DfE, Student loan forecasts for England 2025-26](https://www.gov.uk/government/statistics/student-loan-forecasts-for-england-2025-to-2026) | | Source[DfE, Student loan forecasts for England 2025-26](https://www.gov.uk/government/statistics/student-loan-forecasts-for-england-2025-to-2026) | | | The government forecasts it will not recover about 39% of the value of Plan 2 loans and 33% of Plan 5 loans issued in 2025-26 (DfE, July 2026). Plans, thresholds, interest and write-off rules are from GOV.UK, Repaying your student loan, read on 22 September 2026. ### Why it works like a tax - Repayments depend on income, not on what you borrowed, collected by HMRC through PAYE. - Most Plan 2 borrowers will pay 9% above the threshold for the full 30 years and never clear the balance. - For them, the interest rate changes nothing about what they pay: only the threshold and the rate matter. - Freezing the threshold raises what graduates pay without any change to the loan terms, like a frozen tax threshold. ### Why it is not a tax - Repayments stop once the loan and interest are repaid; a tax would not. - High earners who repay early pay less in total than they would under a lifelong graduate tax. - It is a personal debt with a balance, statements and the option to repay early. - Those who never go to university never pay it. ## Where does the money go? **Student loan repayments** Paid to a named body the Student Loans Company and the Department for Education, collected by HMRC through PAYE. Education (Student Loans) (Repayment) Regulations 2009 Legal position as of 22 September 2026. Source: [legislation.gov.uk](https://www.legislation.gov.uk/). Checked by hand 22 September 2026. ## Common questions What is the student loan repayment threshold? Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate £21,000, for 2026–27.Is a student loan a graduate tax? For most Plan 2 borrowers it works like one, because they will repay 9% above the threshold for 30 years without clearing the balance. Unlike a tax, it stops if the loan is repaid. ## Sources for this page | Source | Publisher | Figures as of | Updated | Licence | | --- | --- | --- | --- | --- | | [GOV.UK, Repaying your student loan; DfE student loan forecasts for England](https://www.gov.uk/repaying-your-student-loan/what-you-pay) | GOV.UK | 22 September 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | | [legislation.gov.uk and official guidance, provision by provision](https://www.legislation.gov.uk/) | legislation.gov.uk | 22 September 2026 | annual | [Open Government Licence v3.0 (legislation.gov.uk)](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations are ours, under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/). ## Related pages - [Next in this section: VAT](https://whereyourmoneygoes.co.uk/vat/) - [How much does the state charge for passports, licences, certificates and other services?](https://whereyourmoneygoes.co.uk/government-fees/) - [How much are HMRC penalties and interest, and how much do they raise?](https://whereyourmoneygoes.co.uk/hmrc-penalties-and-interest/) - [Which is my council, and how do all the councils compare?](https://whereyourmoneygoes.co.uk/councils/) ## More from this publisher - [UK tax calculators](https://howlongisit.co.uk) Published by [Tekstak Ltd](https://tek-stak.co.uk). Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). The figures belong to the publishers listed under Sources and are used under their licences. Figures last updated 29 September 2026.