Student Loan Repayment Thresholds 2026–27
HMRC student loan repayment thresholds for the 2026–27 tax year (6 April 2026 to 5 April 2027). The thresholds remain unchanged from 2025–26.
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 4 (Scotland) | £31,395 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
Plan 1
- Threshold
- £24,990
- Repayment rate
- 9%
- Interest
- Lower of RPI or Bank of England base rate + 1%
- Write-off
- 25 years (or age 65)
Started undergraduate course before September 2012 in England, Wales, or NI.
Plan 2
- Threshold
- £27,295
- Repayment rate
- 9%
- Interest
- RPI (+ up to 3% based on income)
- Write-off
- 30 years
Started undergraduate course in England or Wales between September 2012 and July 2023.
Plan 4 (Scotland)
- Threshold
- £31,395
- Repayment rate
- 9%
- Interest
- RPI
- Write-off
- 30 years
Studied in Scotland, any start date.
Plan 5
- Threshold
- £25,000
- Repayment rate
- 9%
- Interest
- RPI
- Write-off
- 30 years
Started undergraduate course from August 2023 onwards.
Postgraduate
- Threshold
- £21,000
- Repayment rate
- 6%
- Interest
- RPI + 3%
- Write-off
- 30 years
Any postgraduate loan regardless of start date.
Key changes for 2026–27
All repayment thresholds for 2026–27 remain frozen at the same levels as 2025–26. The government confirmed that Plan 2 and Plan 5 thresholds will remain fixed as part of the student finance reform. Plan 1 and Plan 4 thresholds are also unchanged.
How thresholds affect your repayments
You only repay the percentage of your income that exceeds the threshold. For example, on Plan 2 with a salary of £35,000, you repay 9% of the £7,705 above the £27,295 threshold — that is £693.45 per year or £57.79 per month.
If your income is below the threshold, you make no repayments. Repayments pause automatically and resume when your income rises above the threshold.
Calculate your exact repayments →
Frozen thresholds and effective cost
Frozen thresholds mean that as average salaries rise, more graduates cross the repayment threshold and existing borrowers repay a larger proportion of their income. This is sometimes called “fiscal drag” — the same mechanism that pulls more people into higher income tax bands when personal allowances are frozen.
To understand whether you will repay your loan in full before write-off, use our loan projection calculator.
Related calculators
Thresholds based on HMRC published rates. Credibrate is not a tax adviser.