WageStudent Loan Repayments 2026-27
UK student loan repayments are worked out as a fixed share of what you earn above a set threshold, not from the size of the balance you owe. For the main undergraduate plans you repay 9% of everything you earn over your plan's threshold; a Postgraduate Loan is charged at 6% over its own, lower threshold. Because the deduction tracks your income rather than your debt, two people on the same plan and salary repay exactly the same amount, whatever their outstanding balances. This page explains the mechanism; the per-plan pages show the thresholds and what you would repay at different salaries.
| Plan | Who | Rate | 2026-27 | 2025-26 |
|---|---|---|---|---|
| Plan 1 | Pre-2012 England/Wales; Northern Ireland | 9% | £26,900 | £26,065 |
| Plan 2 | 2012-2023 England/Wales | 9% | £29,385 | £28,470 |
| Plan 4 | Scotland (SAAS) | 9% | £33,795 | £32,745 |
| Plan 5 | England, courses from Aug 2023 | 9% | £25,000 | £25,000 |
| Postgraduate | Master's / doctoral | 6% | £21,000 | £21,000 |
How the repayment is calculated
Repayments are income-contingent. Once your earnings pass the threshold for your plan, 9% of the amount above it is taken; earnings below the threshold are ignored entirely. A Postgraduate Loan works the same way but at 6% above the £21,000 threshold.
If you are employed, the deduction is handled through PAYE. Your employer takes it from your pay alongside income tax and National Insurance and passes it to HMRC, so there is nothing to arrange yourself. People who are self-employed repay through their Self Assessment tax return instead.
The balance you owe does not change the monthly figure. Making the loan larger or smaller, or interest being added, has no effect on what comes out of your pay - only your income does. That is the core difference between a student loan and an ordinary loan with fixed instalments.
Which plan applies to you
Only one undergraduate plan applies at a time, and which one depends on where you lived when you started and when your course began. Plan 1 covers older loans in England and Wales plus students from Northern Ireland; Plan 2 covers most English and Welsh courses started from September 2012; Plan 4 covers Scottish students funded by SAAS; and Plan 5 covers newer English courses started from August 2023.
A Postgraduate Loan is different. It does not replace your undergraduate plan - it stacks on top of it. Someone repaying an undergraduate plan and a Postgraduate Loan at the same time has both deductions taken together, 9% above the undergraduate threshold and 6% above £21,000.
When the balance is written off
Any amount still outstanding is cancelled after a set period, which depends on your plan and the date you first borrowed. Interest is added over the life of the loan, but because repayments follow your income rather than the balance, many borrowers never clear the full amount before it is written off.
This is why the size of the debt matters far less than people expect. What leaves your pay each month is driven by your salary and your plan's threshold, not by how much is left to repay.
Frequently asked questions
Does paying off more reduce my monthly repayment?
No. The deduction is 9% of income above your threshold regardless of the balance, so overpaying lowers the total you eventually repay but does not change the amount taken from each payslip.
Can I be repaying two loans at once?
You can only be on one undergraduate plan at a time, but a Postgraduate Loan runs alongside it. In that case both deductions apply together - 9% above your undergraduate threshold and 6% above £21,000.
What happens if my income drops below the threshold?
Repayments stop automatically. Nothing is deducted in any period where your earnings are below the threshold, and they restart on their own once you earn above it again.
General information, not advice. Estimates assume the standard 1257L tax code and typical circumstances; your payslip may differ by a pound or two because HMRC payroll software truncates at each step. Verify with HMRC or an accountant for any decision. WageReckon stores no salary data - the calculators run in your browser.
Rates for the 2026-27 tax year, current as of 24 July 2026. Source: HMRC (gov.uk). Contains public sector information licensed under the Open Government Licence v3.0. Source: HMRC / gov.uk. See how we calculate.