Student Loan Repayment Thresholds 2026/27: How Much You Can Earn Before You Repay
Your repayment threshold is the salary at which deductions begin. Here is the figure for every plan in the 2026/27 tax year, plus what it means for your pay.
The student loan repayment threshold is the amount you can earn each year before any of your salary is deducted towards your loan. Earn below it and you repay nothing. Earn above it and you repay a fixed percentage of the income overthe threshold — never a percentage of your whole salary. The threshold you use depends entirely on your repayment plan, and the figures change at the start of each tax year.
Student loan repayment thresholds for 2026/27
These are the annual thresholds that apply from 6 April 2026, along with the monthly and weekly equivalents that payroll uses to calculate deductions:
| Plan | Annual | Monthly | Weekly | Rate |
|---|---|---|---|---|
| Plan 1 | £26,900 | £2,241 | £517 | 9% |
| Plan 2 | £29,385 | £2,448 | £565 | 9% |
| Plan 4 (Scotland) | £33,795 | £2,816 | £649 | 9% |
| Plan 5 | £25,000 | £2,083 | £480 | 9% |
| Postgraduate | £21,000 | £1,750 | £403 | 6% |
The repayment rate is 9% of income above the threshold for all undergraduate plans. The Postgraduate Loan (sometimes called Plan 3) is the exception at 6%.
Which threshold applies to you?
Before you can use the right figure, you need to know your plan type:
- Plan 1: Undergraduate study started before September 2012 in England or Wales, or any time in Northern Ireland.
- Plan 2: Undergraduate study started between September 2012 and July 2023 in England or Wales. This is currently the most common plan.
- Plan 4: Any student loan from the Student Awards Agency Scotland (SAAS).
- Plan 5: Undergraduate study started on or after 1 August 2023 in England.
- Postgraduate Loan: A Master’s or doctoral loan, repaid alongside any undergraduate loan you hold.
You can confirm your plan in your online account with the Student Loans Company, or check the deduction line on a recent payslip.
How the threshold actually works on your payslip
A common misunderstanding is that crossing the threshold means a large chunk of your salary disappears. It does not. Repayments are charged only on the slice of income above the threshold, and PAYE works it out per pay period rather than across the whole year.
On Plan 2 in 2026/27, deductions begin once your earnings pass £2,448 in a month. If you are paid weekly, the trigger is £565 a week. This is why a bonus or an unusually high-paid month can produce a one-off deduction even if your annual salary sits below the yearly threshold — payroll only looks at that single period.
Worked examples
Plan 2, salary £35,000:You earn £5,615 above the £29,385 threshold. At 9% that is £505 a year, or roughly £42 a month.
Plan 5, salary £30,000:You earn £5,000 above the £25,000 threshold. At 9% that is £450 a year, around £37 a month. Plan 5’s lower threshold means repayments start at a lower salary than Plan 2.
Postgraduate Loan, salary £30,000:You earn £9,000 above the £21,000 threshold. At 6% that is £540 a year, about £45 a month.
Plan 2 and Postgraduate together, salary £40,000:You pay 9% above £29,385 on the undergraduate loan and6% above £21,000 on the postgraduate loan at the same time. That is roughly £88 a month on Plan 2 plus £95 a month on the postgraduate loan — the two run concurrently, not one after the other.
What counts as income for the threshold?
For employees, repayments are based on gross pay subject to National Insurance — salary, overtime, bonuses and commission — before tax but after a pension contribution made through salary sacrifice. If you are self-employed, repayments are calculated through Self Assessment on your total income above the threshold. Savings interest, dividends and other unearned income can also count once they pass £2,000 in a year.
Do the thresholds change every year?
Most do. Plan 1, Plan 2 and Plan 4 thresholds are reviewed annually and usually rise in line with earnings or inflation, which is why the 2026/27 figures are higher than 2025/26. The Plan 5 threshold of £25,000 has been fixed and is set to remain frozen until at least 2027, meaning more borrowers cross it as wages rise. Always check the figure for the current tax year before relying on it.
See what you would actually repay
The threshold is only half the picture — what matters is the monthly deduction and whether you are on track to clear the balance before it is written off. Use our student loan repayment calculator to enter your salary and plan and see your repayments projected over time, or read our guides on Plan 2 vs Plan 5 and when your loan is written off.