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.

Postgraduate Student Loan on £70,000 UK 2026/27

The Postgraduate Loan covers master's and doctoral students from England and Wales (postgraduate borrowers from Northern Ireland are on Plan 1, and from Scotland on Plan 4). Repayments are 6% (not 9%) of earnings above the Postgrad threshold; loan written off after 30 years. Repaid in parallel with any undergraduate plan.

Annual repayment

£2,940

Monthly repayment

£245

Effective rate on salary

4.20%

Compare across all plans on the same £70,000 salary

Plan	Annual repayment	Monthly	Effective rate
Plan 1	£3,879	£323	5.54%
Plan 2	£3,655	£305	5.22%
Plan 4 (Scotland)	£3,258	£272	4.65%
Plan 5	£4,050	£338	5.79%
Postgraduate	£2,940	£245	4.20%

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FAQ

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.