UK Student Loan Repayments Explained (Plans 1, 2, 4 & 5)
Last updated: June 2025
If you have a UK student loan, repayments are deducted automatically through PAYE once you earn above your plan’s threshold. The plan you are on depends on when and where you studied. Here is how each works in 2025–26.
The repayment thresholds
You repay 9% of everything you earn above your plan’s threshold:
- Plan 1 (pre-2012 England/Wales, all Scotland before 2026 reforms): £24,990
- Plan 2 (2012–2023 England/Wales): £27,295
- Plan 4 (Scotland): £31,395
- Plan 5 (2023 onwards England/Wales): £25,000
How repayments are calculated
Repayments are 9% of income above the threshold, not 9% of your whole salary. For example, on Plan 2 with a £30,000 salary, you repay 9% of (£30,000 − £27,295) = £243 per year, roughly £20 per month.
When the loan is written off
Outstanding balances are written off after a set period — typically 30 years for Plan 2 and 40 years for Plan 5 — regardless of how much you have repaid. For many graduates this means the loan functions more like an additional payroll deduction than a traditional debt.
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