WagePlan 2 Student Loan Repayment 2026-27
Plan 2 is the student loan repayment plan for most undergraduate courses in England and Wales that started from September 2012 onwards, up to the introduction of Plan 5. If you are on Plan 2 you repay 9% of everything you earn above the £29,385 threshold, taken automatically through PAYE. The table on this page shows the repayment at different salaries so you can find the deduction that matches your income.
| 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 |
Student loan repayment calculator
You repay a percentage of income over the plan threshold, collected through PAYE. The balance owed never changes the deduction. A postgraduate loan is charged additionally on top of any undergraduate plan. Estimates, not advice.
Who is on Plan 2
Plan 2 typically applies to students in England and Wales who started an undergraduate course between September 2012 and the point at which Plan 5 took over for newer English courses. This is the plan a large share of recent graduates are on.
As with every undergraduate plan, only one applies at a time. If you later took out a Postgraduate Loan, it does not replace Plan 2 - it is added on top and deducted alongside it.
How much you repay
The Plan 2 threshold is £29,385, higher than Plan 1's. You repay 9% of your income above £29,385, and nothing on earnings below it.
The repayment is collected through PAYE with your income tax and National Insurance. The table on this page lists the annual and monthly figure at a range of salaries, each worked out against the £29,385 threshold and the 9% rate.
Frequently asked questions
Is Plan 2 the same rate as the other plans?
The rate is the same - 9% of income above the threshold. What differs is the threshold, which for Plan 2 is £29,385.
Does interest on a Plan 2 loan change my repayment?
No. Interest affects the total balance but not the monthly deduction, which is set purely by your income above £29,385.
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.