UK Student Loan Repayment 2025 — Plans 1/2/4/5 & Write-Off
Five plans, five different thresholds
Which repayment plan you're on depends on where and when you studied, not a choice you make — and each plan has its own threshold, above which repayments are deducted:
| Plan | 2026/27 threshold | Repayment rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 (frozen from 2027 to 2030) | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 (frozen until April 2027) | 9% |
| Postgraduate | £21,000 | 6% |
The Plan 4 threshold, at £33,795, is the highest of the group — meaningfully different from the Plan 5 threshold at £25,000, even though both are relatively recent loan types. If you have both an undergraduate loan (Plan 1, 2, 4 or 5) and a Postgraduate loan simultaneously, deductions from both can apply at once, each against its own separate threshold.
How the deduction actually works
Above the relevant threshold, 9% of income above that line is deducted (6% for Postgraduate loans), collected automatically through PAYE for employees or via Self Assessment for the self-employed — it is not 9% of your whole income, only the portion above the threshold.
When loans are written off
Write-off timing varies significantly by plan, not a single figure across the board:
- Plan 1: written off 25 years after the April you were first due to start repaying (loans taken out from September 2006 onward).
- Plan 2: written off 30 years after the April you were first due to start repaying.
- Plan 4: written off 30 years after that April, or at age 65, whichever comes first, for older Plan 4 loans (pre-August 2007).
- Plan 5: written off 40 years after that April — the longest of any plan.
- Postgraduate: written off 30 years after that April.
Worked example
A Plan 2 graduate earns £35,000 a year.
- Income above the Plan 2 threshold: £35,000 − £29,385 = £5,615
- Annual repayment: £5,615 × 9% = £505.35
A Plan 5 graduate earning the same £35,000 has a lower threshold to clear:
- Income above the Plan 5 threshold: £35,000 − £25,000 = £10,000
- Annual repayment: £10,000 × 9% = £900
Identical income, identical 9% rate, but the Plan 5 graduate repays £394.65 more per year (£900 − £505.35) purely because their threshold is lower — the plan you're on can matter as much as your actual salary.
FAQ
Q: Can I have deductions taken for two different plans at once? A: Yes — an undergraduate plan (1, 2, 4, or 5) and a Postgraduate loan are assessed against their own separate thresholds, and both can be deducted from the same paycheque simultaneously if your income clears both.
Q: Is the Plan 2 threshold going to keep rising every year? A: No — it has been announced as frozen at £29,385 from April 2027 through April 2030, so it will not track inflation during that window even as prices and wages rise.
Q: Does an unpaid student loan balance ever get forgiven before the write-off date? A: Generally no — short of specific circumstances like death or permanent disability, the loan runs until its plan-specific write-off point (25 to 40 years, depending on plan) regardless of how much remains unpaid at that point.
Sources
Figures verified against gov.uk and Student Loans Company guidance as of 30 July 2026:
- gov.uk — "Student loans: a guide to terms and conditions 2026 to 2027" (all five plan thresholds; 9%/6% repayment rates; Plan 2 freeze 2027–2030; Plan 5 freeze until April 2027)
- gov.uk — "When your student loan gets written off or cancelled" (Plan 1: 25 years; Plan 2: 30 years; Plan 4: 30 years or age 65 for pre-2007 loans; Plan 5: 40 years; Postgraduate: 30 years)
- House of Commons Library — "Student loans: Interest rates and repayment thresholds FAQs" (cross-check on the current threshold figures)