What Are Student Loan Repayment Thresholds? (UK 2025/26)

If you have a UK student loan, repayments are deducted automatically through PAYE once your income exceeds the repayment threshold for your plan type. You repay a percentage of everything earned above the threshold — not on your total income.

Plan Types and Thresholds (2025/26)

Plan 1 (started before September 2012 in England/Wales, or any time in Scotland/NI): Threshold £24,990/year; repayment rate 9%.

Plan 2 (started September 2012 or later in England/Wales): Threshold £27,295/year; repayment rate 9%.

Plan 4 (Scottish loans from April 2021): Threshold £27,660/year; repayment rate 9%.

Plan 5 (started September 2023 or later in England): Threshold £25,000/year; repayment rate 9%.

Postgraduate Loan: Threshold £21,000/year; repayment rate 6%.

How Repayments Interact with Tax

Student loan repayments are not technically a tax, but they behave like one — they are deducted from your salary alongside income tax and NICs. If you have both a Plan 2 loan and a Postgraduate loan, both are deducted simultaneously, creating a combined effective rate of 15% (9% + 6%) on income above both thresholds.

Automatic Write-Off

Plan 2 loans are written off 30 years after the April following graduation. Plan 5 loans are written off after 40 years.