Student loan repayment thresholds for 2026/27, the 9% and 6% rules, interest, write-off dates for each plan, worked examples, self-employed repayments and whether overpaying makes sense.
A UK student loan behaves more like a graduate tax than a normal debt. What you repay each month depends on what you earn, not on how much you borrowed, and any balance left after a set period is written off. Understanding the rules for your plan is the key to budgeting and to deciding whether overpaying makes sense.
Which plan are you on?
- Plan 1: English or Welsh students who started before September 2012, and Northern Irish students.
- Plan 2: English or Welsh students who started between 1 September 2012 and 31 July 2023.
- Plan 4: Scottish students.
- Plan 5: English students who started on or after 1 August 2023.
- Postgraduate loan: master's and doctoral loans in England and Wales.
You can check your plan in your online Student Loans Company account.
The basic rule
You repay 9% of your income above your plan's threshold, or 6% for postgraduate loans. If you are employed, repayments are taken through PAYE automatically. Earn below the threshold in a pay period and you pay nothing that period.
Thresholds for 2026/27
- 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 loan: £21,000 a year (£1,750 a month), at 6%.
Thresholds are normally reviewed each April.
Worked examples
- Plan 2, salary £35,000: 9% × (£35,000 − £29,385) = £505.35 a year, about £42 a month.
- Plan 5, salary £35,000: 9% × (£35,000 − £25,000) = £900 a year, £75 a month.
- Plan 2 plus postgraduate loan, salary £35,000: £505.35 plus 6% × (£35,000 − £21,000) = £840, so £1,345.35 a year in total.
Notice that the balance doesn't affect the monthly repayment.
Interest
Interest is linked to the Retail Prices Index (RPI). For Plan 2, it ranges from RPI while studying and for lower earners, up to RPI plus 3% for higher earners, subject to caps. For 1 September 2026 to 31 August 2027, the government has capped Plan 2 interest at 6%, so no Plan 2 borrower pays more than 6% in that year (RPI is 4.1%). Plan 5 interest is set at RPI. Plan 1 and Plan 4 interest is the lower of RPI or the Bank of England base rate plus 1%. Check current rates on GOV.UK, as they change.
When loans are written off?
- Plan 1: 25 years after the April you were first due to repay (for loans first paid from September 2006), or at age 65 for older loans.
- Plan 2: 30 years after the April you were first due to repay.
- Plan 4: 30 years after the April you were first due to repay (with an age-65 rule for older loans).
- Plan 5: 40 years after the April you were first due to repay.
- Postgraduate loans: 30 years.
Loans are also cancelled if you die, or in some cases if you are permanently unable to work because of disability.
Self-employed and other income
If you are self-employed, or have untaxed income above £2,000, repayments are calculated through your Self Assessment tax return and paid with your tax bill.
Moving abroad
If you leave the UK for more than three months, you must tell the Student Loans Company. Overseas repayments are set using thresholds for your country of residence, and failing to keep in touch can lead to fixed repayments.
Should you overpay?
For many Plan 2 borrowers, the loan will be written off before it's repaid, so overpaying simply means paying more overall. Overpaying tends to make sense only for higher earners likely to clear the balance anyway, or for borrowers with small balances. Plan 5's lower threshold and 40-year term mean more borrowers will repay in full. Use the government's repayment calculator, and compare with other priorities such as paying off expensive debt or saving into a pension.
Check your deductions
- Check payslips show the right plan; the wrong plan can mean over- or underpayment.
- If you've overpaid, for example after earning below the threshold over a full tax year, you can apply for a refund.
- Repayments stop automatically when the loan is cleared, but check, and keep your SLC account details updated to avoid overpaying.
Frequently asked questions
Does a student loan affect my credit score?
Student loans from the SLC don't appear on credit files, but lenders may ask about them, and repayments reduce your take-home pay, which affects affordability.
Can I pay off a student loan early?
Yes, at any time, without penalty. Whether it's worth doing depends on your likely earnings.
Sources and further reading
- GOV.UK: Repaying your student loan
- GOV.UK: What you pay
- GOV.UK: When your student loan gets written off
- GOV.UK: Student loans terms and conditions 2026 to 2027
Facts checked on 20 October 2026. Spotted an error? Tell us and we will correct it.