WageStudent Loan Thresholds 2026-27 vs 2025-26
Student loan repayment thresholds are reviewed each year, and for the 2026-27 tax year the Plan 1, Plan 2 and Plan 4 thresholds have risen. Because you repay 9% of income above your threshold - or 6% above £21,000 for a Postgraduate Loan - a higher threshold means you repay slightly less on the same salary, since more of your income now sits below the line. The table on this page lists the current thresholds side by side so you can see how yours has moved.
| 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 |
What changed for 2026-27
For 2026-27 the Plan 1 threshold is £26,900, Plan 2 is £29,385 and Plan 4 is £33,795, each higher than the year before. The Plan 5 threshold of £25,000 and the Postgraduate Loan threshold of £21,000 are held at the same level rather than rising.
An increase to a threshold is worth watching if you earn just above it. Since only income over the threshold is charged, a higher threshold shrinks the slice that 9% is applied to, which slightly reduces the deduction on an unchanged salary.
Why the thresholds matter more than the balance
The threshold, not the size of your loan, is what drives your repayment. Two borrowers on the same plan and salary repay the same amount whatever they owe, so a change to the threshold affects everyone on that plan in the same way.
This is also why the annual review is the figure to track. When a threshold moves, the repayment on any given salary moves with it, whereas interest added to your balance changes nothing about the monthly deduction.
Frequently asked questions
Did all the thresholds go up for 2026-27?
The Plan 1, Plan 2 and Plan 4 thresholds rose to £26,900, £29,385 and £33,795. The Plan 5 threshold of £25,000 and the £21,000 Postgraduate Loan threshold were held at the same level.
Does a higher threshold mean I repay less?
On the same salary, yes, slightly. A higher threshold leaves more of your income below the line, so 9% is charged on a smaller amount above it.
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.