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Short answer: there are five student loan repayment plans in the UK, and which one you are on depends on where and when you studied, not on what you would prefer. Four of them take 9% of your income over a threshold, and the Postgraduate Loan takes 6%. The big news for 2026 is the Plan 2 threshold freeze from April 2027, which means many graduates will repay more as their pay rises. The table below compares every plan, and the rest of this guide explains what the figures mean.
Student loan plans compared
The plan you are on depends on where and when you studied, and you cannot choose it. Figures are the ones GOV.UK shows for the current tax year.
| Option | Repay over (a year) | Repayment rate | Interest | Written off | Who it covers | Link |
|---|---|---|---|---|---|---|
| Plan 1 | £26,900 | 9% | 4.1% | 25 years after the April you were first due to repay if your first loan was paid on or after 1 September 2006, otherwise at 65 | England and Wales: courses started before 1 September 2012. Northern Ireland: any course | See GOV.UK |
| Plan 2 | £29,385 | 9% | 4.1% to 6%, depending on your income | 30 years after the April you were first due to repay | England: courses started from 1 September 2012 to 31 July 2023. Wales: undergraduate and PGCE courses started from 1 September 2012 | See GOV.UK |
| Plan 4 | £33,795 | 9% | 4.1% | 30 years after the April you were first due to repay if your first loan was paid on or after 1 August 2007, otherwise at 65 or after 30 years, whichever comes first | Scotland: undergraduate and postgraduate | See GOV.UK |
| Plan 5 | £25,000 | 9% | 4.1% | 40 years after the April you were first due to repay | England: undergraduate courses, PGCE and some other loans for courses started on or after 1 August 2023 | See GOV.UK |
| Postgraduate Loan | £21,000 | 6% | 6% | 30 years after the April you were first due to repay (England and Wales) | England and Wales: master or doctoral courses. Northern Ireland postgraduates are on Plan 1 and Scottish postgraduates on Plan 4 | See GOV.UK |
Checked 18 October 2026.
How we compare these
Every figure comes from the GOV.UK pages listed under Sources, which we read on 18 October 2026. These are not products you choose between, so there are no ratings. The plan rules describe students who applied to Student Finance England unless stated, and Wales, Scotland and Northern Ireland have their own details. Thresholds change on 6 April each year, so check GOV.UK before you rely on a figure.
How repayments work
You repay a percentage of your income over the threshold for your plan. Income means what you earn before tax and other deductions, including bonuses and overtime. The amount you owe, which is what you borrowed plus interest, has no impact on how much you repay each year.
Repayments start from the April after you leave your course, and only once your income is above the threshold. They stop automatically if you stop working or your income falls below the threshold. If you earn more than the threshold in a particular week or month, for example because of a bonus, you can still make a repayment that month, and you can ask for a refund at the end of the tax year if your annual income was below the yearly threshold.
Which plan are you on?
| Where you applied | When your course started | Your plan |
|---|---|---|
| England | On or after 1 August 2023 | Plan 5 for undergraduate courses and PGCE. A Postgraduate Loan for master's or doctoral courses |
| England | 1 September 2012 to 31 July 2023 | Plan 2 for undergraduate courses and PGCE. A Postgraduate Loan for master's or doctoral courses |
| England | Before 1 September 2012 | Plan 1 |
| Wales | On or after 1 September 2012 | Plan 2 for undergraduate courses and PGCE. A Postgraduate Loan for master's or doctoral courses |
| Wales | Before 1 September 2012 | Plan 1 |
| Scotland | Any | Plan 4 |
| Northern Ireland | Any | Plan 1 |
You can check your plan by signing in to your online account on GOV.UK and downloading your plan type letter. If it is different from the plan your employer has, show them the letter so they can update your payroll details. You can get a refund if you paid back too much because you were on the wrong plan.
Interest
Interest is added to your loan even if you are not working or your income is below the threshold. Plans 1, 4 and 5 are currently charged 4.1%, and a Postgraduate Loan is charged 6%.
Plan 2 is different. After you finish your course, the interest rate depends on your income. It is 4.1% at £29,385 a year or less, and 6% at £52,885 or more. In between, GOV.UK says it is 4.1% plus up to 1.9%. GOV.UK also says there is currently a cap of 6% on the Plan 2 rate.
When loans are written off
Whatever is left after the write-off period is cancelled. The period depends on your plan and, for Plans 1 and 4, on when your first loan was paid. Each period starts from the April you were first due to repay. The table above has the details, and the GOV.UK page on write-off lists the exceptions, including for people who become unable to work because of illness or disability.
What the Plan 2 freeze means
In the Autumn Budget on 26 November 2025, the Government announced that the Plan 2 repayment threshold will be frozen at £29,385 for three years from April 2027. The associated interest threshold of £52,885 is frozen as well. A Department for Education written answer says the thresholds are frozen until April 2030, when they will increase annually by inflation. Reports on the announcement say it affects Plan 2 and does not affect Plan 5.
Under the previous policy, thresholds were due to rise each year. With the threshold frozen, any pay rise means a bigger slice of your income is repayable, because the starting line does not move. The Office for Budget Responsibility has estimated that the full-time national minimum wage will be only about £400 below the threshold by 2030, which is why critics describe the freeze as a stealth tax. The Government says it is needed to keep the system sustainable.
Here is an illustration, not a forecast. Say you earn £32,000 in April 2027 and your pay rises by £1,000 a year. With the threshold frozen at £29,385, you repay 9% of the amount above it:
| Tax year | Salary | Above the threshold | Repaid in the year |
|---|---|---|---|
| 2027/28 | £32,000 | £2,615 | About £235 |
| 2028/29 | £33,000 | £3,615 | About £325 |
| 2029/30 | £34,000 | £4,615 | About £415 |
If the threshold had instead risen by £1,000 a year in line with your pay, your repayment would have stayed at about £235 each year. So in this example the freeze costs you about £90 more in the second year and about £180 more in the third. Each extra £1,000 of pay above the frozen threshold adds £90 a year to your repayments. Whether that matters over the life of your loan depends on whether you would clear it before it is written off.
If you have more than one loan
You may be on different plans for different loans. If you are on more than one plan and do not have a Postgraduate Loan, you repay 9% of your income over the lowest threshold of the plans you have, and you only have a single repayment taken each time you are paid. If you have a Postgraduate Loan as well, you repay 6% over the Postgraduate threshold and 9% over the lowest threshold of your other plans.
Repaying early
GOV.UK says there is no penalty for paying some or all of your loan off early. Whether it makes sense depends on whether you would otherwise repay the loan in full before it is written off, and that varies a lot between plans and salaries. Our student loan repayment calculator shows what you would repay on a given salary, how long it takes, and how much could be written off. Student loans do not appear on your credit report and do not affect your credit score, although lenders may consider them in affordability checks for something like a mortgage.
Common mistakes
Being on the wrong plan in payroll. Check your plan type letter against your payslip.
Assuming a bigger balance means bigger repayments. Your repayments depend on your income, not on what you owe.
Not updating your details when you move abroad. You must tell the Student Loans Company if you leave the UK for more than three months.
For how much you can borrow in the first place, see our guide to Student Finance England in 2026/27.
Sources
- GOV.UK: Repaying your student loan, how much you repay
- GOV.UK: Which repayment plan you are on
- GOV.UK: When you start repaying
- GOV.UK: When your student loan gets written off or cancelled
- HEPI: Understanding Plan 2 repayment terms (2026)
- Times Higher Education: Stealth tax fears as student loan repayment threshold frozen
- Written Parliamentary Question 111111: Department for Education answer on the Plan 2 threshold freeze
Frequently asked questions
Which student loan plan am I on?
It depends on where you applied and when your course started, and you cannot choose it. In England, courses started from 1 August 2023 are Plan 5, courses started from 1 September 2012 to 31 July 2023 are Plan 2, and earlier courses are Plan 1. Scotland is Plan 4 and Northern Ireland is Plan 1. You can check your plan in your online account on GOV.UK.
How much do I repay on a student loan?
You repay 9 percent of your income over the threshold for Plans 1, 2, 4 and 5, and 6 percent for a Postgraduate Loan. The amount you owe does not change how much you repay each year.
What is the Plan 2 repayment threshold freeze?
The Government announced in the Autumn Budget in November 2025 that the Plan 2 repayment threshold will be frozen at 29,385 pounds for three years from April 2027. A Department for Education answer says thresholds are frozen until April 2030, when they increase annually by inflation.
Does the freeze affect Plan 5?
Reports on the announcement say the change affects Plan 2 and does not affect Plan 5 borrowers, who started university from 2023 onwards.
When is my student loan written off?
It depends on your plan: 25 years for Plan 1 if your first loan was paid on or after 1 September 2006, 30 years for Plan 2, 30 years for Plan 4 for loans paid on or after 1 August 2007, 40 years for Plan 5, and 30 years for a Postgraduate Loan in England and Wales. The clock starts from the April you were first due to repay.
Can I get a refund of student loan repayments?
GOV.UK says you can ask for a refund at the end of the tax year if your annual income was less than the yearly threshold for your plan. You may also be due money back if you were put on the wrong plan.
Do I have to pay anything if I earn below the threshold?
No repayments are taken when your income is below the threshold, but interest is still added to your loan.
This article is general information, not financial, legal or tax advice. Rules and figures change, so check the official sources above before you act.