Plan 1: started before 1 September 2012 in England or Wales, or any loan from Northern Ireland. Plan 2: started in England between 1 September 2012 and 31 July 2023, or in Wales on or after 1 September 2012. Plan 4: any loan from Scotland. Plan 5: started in England on or after 1 August 2023. Postgraduate Loan: master's or doctoral loan from England or Wales (Northern Ireland postgraduate loans are Plan 1, Scottish ones Plan 4). Your active plan type letter in your Student Loans Company account confirms it.

Can I have more than one plan?

Yes. An undergraduate plan and a Postgraduate Loan are repaid at the same time, each on income over its own threshold. Two undergraduate plans (for example Plan 1 and Plan 2) are different: you make one repayment over the lower of the two thresholds, split between the loans.

Do repayments affect Income Tax?

No - student loan repayments are separate from Income Tax. Your employer deducts them through PAYE and pays them to HMRC with your tax and National Insurance; HMRC passes the repayment information to the Student Loans Company, which updates your balance. They do not reduce your taxable income.

What happens if I don't earn enough?

You pay nothing. Repayments only start once your income is above the threshold for your plan, and then only 9% (6% for a Postgraduate Loan) of income above it. If a bonus pushes one pay period over the weekly or monthly threshold but your annual income stays below the yearly threshold, you can ask for a refund after the tax year ends.

What's the threshold for my plan?

2026/27 yearly thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate Loan £21,000 (gov.uk). Payroll uses the matching monthly or weekly threshold for each pay period.

Student Loan Repayment on £40,000 UK Salary

With Plan 2 you'd repay £955/year (£80/month) from a £40,000 salary. Pick different plans below to compare.

Take-home pay

£955

19.2% effective tax rate

Monthly: £80
Weekly: £18
Daily: £4
Hourly: £0.49

Gross salary	£40,000
Income Tax	−£5,486
National Insurance	−£2,194
Student loan	−£955
Take-home	£31,364

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Your salary in context

ONS · HMRC · CPI

Annual repayment

You'll repay £955 a year across all active plans — roughly £80 a month through PAYE.
Plan 2 breakdown

Threshold £29,385 at 9%: earnings above the threshold trigger £955/year (£80/month).
Take-home after loan

After Income Tax, NI and the loan deduction you keep £31,364/year — £2,614/month.
Marginal loan rate

Your highest marginal student-loan rate is 9% — stacked on top of Income Tax and NI, this is what every extra £1 above the highest threshold costs.

Nearby salaries

Frequently asked questions

Which plan am I on?: Plan 1: started before 1 September 2012 in England or Wales, or any loan from Northern Ireland. Plan 2: started in England between 1 September 2012 and 31 July 2023, or in Wales on or after 1 September 2012. Plan 4: any loan from Scotland. Plan 5: started in England on or after 1 August 2023. Postgraduate Loan: master's or doctoral loan from England or Wales (Northern Ireland postgraduate loans are Plan 1, Scottish ones Plan 4). Your active plan type letter in your Student Loans Company account confirms it.
Can I have more than one plan?: Yes. An undergraduate plan and a Postgraduate Loan are repaid at the same time, each on income over its own threshold. Two undergraduate plans (for example Plan 1 and Plan 2) are different: you make one repayment over the lower of the two thresholds, split between the loans.
Do repayments affect Income Tax?: No - student loan repayments are separate from Income Tax. Your employer deducts them through PAYE and pays them to HMRC with your tax and National Insurance; HMRC passes the repayment information to the Student Loans Company, which updates your balance. They do not reduce your taxable income.
What happens if I don't earn enough?: You pay nothing. Repayments only start once your income is above the threshold for your plan, and then only 9% (6% for a Postgraduate Loan) of income above it. If a bonus pushes one pay period over the weekly or monthly threshold but your annual income stays below the yearly threshold, you can ask for a refund after the tax year ends.
What's the threshold for my plan?: 2026/27 yearly thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate Loan £21,000 (gov.uk). Payroll uses the matching monthly or weekly threshold for each pay period.