Student loan repayment thresholds 2026/27
The payroll thresholds changed from 6 April 2026. Here are the current Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate Loan figures — and how deductions work from salary.
2026/27 thresholds and rates
| Loan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
PAYE deductions are based on the relevant weekly or monthly pay-period threshold, not simply an annual calculation divided by twelve. Bonuses and overtime can therefore trigger a deduction in a high-pay month.
Monthly thresholds
For 2026/27 the official monthly thresholds are approximately £2,241.66 for Plan 1, £2,448.75 for Plan 2, £2,816.25 for Plan 4, £2,083.33 for Plan 5 and £1,750 for Postgraduate Loans.
Which plan are you on?
For Student Finance England, undergraduate courses started from August 2023 are generally Plan 5, while courses started from September 2012 to July 2023 are generally Plan 2. Scottish borrowers are generally Plan 4 and Northern Irish borrowers Plan 1. Always confirm your own plan with the Student Loans Company.
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FAQs
What is the Plan 2 threshold in 2026/27?
£29,385 a year, with repayments at 9% of earnings above the relevant pay-period threshold.
What is the Plan 5 threshold in 2026/27?
£25,000 a year, with repayments at 9% of earnings above the relevant pay-period threshold.
What is the Postgraduate Loan threshold?
£21,000 a year, with repayments at 6% above the threshold.