Student loan repayments.
Tax year 2026/27 · thresholds verified against GOV.UK on 5 August 2026
Student-loan repayments behave like a tax, not like a loan: what you repay depends only on what you earn, the balance doesn’t change the monthly amount, and it stops the moment your income drops below the threshold. Which threshold applies depends on your plan, set by when and where you studied, not by choice.
The 2026/27 thresholds
| Plan | Yearly threshold | Rate above it |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Roughly: Plan 1 is pre-2012 starters (England/Wales) and Northern Ireland; Plan 2 is England/Wales 2012–2023; Plan 4 is Scottish loans; Plan 5 is England/Wales from August 2023; the postgraduate loan covers master’s and doctoral study and can run alongside an undergraduate plan, the two repayments stack.
How payroll actually calculates it
Each pay period stands alone. Your employer takes your NI-able pay for the month, subtracts the monthly threshold (the yearly figure ÷ 12), applies 9% (or 6% for postgraduate), and rounds down to the whole pound. GOV.UK’s own example: £33,000 a year on Plan 1 → £2,750 a month, minus the £2,241 monthly threshold, × 9% = £45.81, repaid as £45. This calculator mirrors that rounding, which is why its figures match payslips where others drift by a pound or two.
A bonus month can trigger a repayment
Because each period stands alone, a bonus that pushes one month over the monthly threshold triggers a repayment that month even if your annual income is below the yearly threshold , refundable after year-end via the Student Loans Company.
See the effect on any salary, every after-tax page includes a per-plan table, or set your exact plans in the calculator. Source: GOV.UK, repaying your student loan. Estimates, not financial advice.