Plan 2 vs Plan 5 Student Loan: Key Differences Explained

If you started university in England before August 2023, you're on Plan 2. Starting from August 2023, new students are on Plan 5. The differences are significant.

Repayment threshold

• Plan 2: £29,385/year (from April 2026, then frozen for 3 years)
• Plan 5: £25,000/year (rising with RPI from April 2027)

Repayment rate

Both plans: 9% of income above the threshold.

Write-off period

• Plan 2: Written off after 30 years
• Plan 5: Written off after 40 years

Who repays more?

Plan 5 borrowers with average or above-average earnings will likely repay significantly more over their careers — the lower threshold and longer write-off period combine to increase total repayments substantially.

Use our student loan calculator to model your exact repayments under either plan.