UK Student Loan Repayments: How Much You Pay in 2026–27

Verified November 10, 2026, at 5:10 p.m. UTC (London, GMT, UTC+00:00).

UK student loan repayments generally depend on your income and repayment plan, not the size of your outstanding balance. In the 2026–27 tax year, borrowers on Plans 1, 2, 4, and 5 pay 9% of earnings above their plan’s threshold; those with a postgraduate loan pay 6% above a separate threshold.

Plan 5 borrowers became eligible to start repaying in April 2026 at the earliest. Its annual threshold is £25,000 for 2026–27, so an eligible borrower earning a steady £30,000 a year would repay approximately £37 a month. The amount changes with earnings and stops when income falls below the applicable threshold.

Destaques

• Annual undergraduate plan thresholds range from £25,000 to £33,795 in 2026–27.
• Employers usually deduct repayments through payroll; self-employed borrowers generally repay through their tax return.
• Interest can continue to build even when no repayment is due.
• Unpaid balances can be written off, but the timing depends on the plan and the borrower’s circumstances.

How much do you repay on a UK student loan?

For income-contingent loans, the repayment calculation uses income before tax and other deductions, including bonuses and overtime. Once you are due to repay, the percentage applies only to income above the threshold for your plan. The following annual thresholds apply for the tax year from April 6, 2026, to April 5, 2027, according to HM Revenue and Customs guidance.

For example, a Plan 5 borrower earning £30,000 a year is £5,000 above the annual threshold. Nine percent of that is £450 a year, or about £37 a month if pay is even throughout the year. Payroll calculations use the threshold for each pay period and round deductions, so actual payslip amounts can differ slightly.

Your plan depends on factors including where you received student finance, the course, and when it started. For example, Plan 4 generally applies to Scottish student loans, while Plan 5 generally applies to eligible English undergraduate borrowers starting courses on or after August 1, 2023. The government’s plan guide explains the distinctions and exceptions.

When do student loan repayments start?

For most borrowers, the earliest repayment date is the April after they leave their course, provided their income is above the threshold. Some long part-time courses have an earlier repayment start while the borrower is still studying. Plan 5 repayments could not begin before April 2026. See GOV.UK’s repayment start guidance for course-specific rules.

For employees, the employer normally calculates deductions through Pay As You Earn, alongside income tax and National Insurance, and shows them on the payslip. Tell a new employer that you have a student loan and provide the correct plan information. If you are self-employed, HM Revenue and Customs normally calculates the amount due through Self Assessment. If you move abroad for more than three months, tell the Student Loans Company (SLC); overseas thresholds and payment arrangements apply.

What happens if your income changes?

Payroll looks at each week or month separately. A bonus or overtime can push a particular pay period above the threshold and trigger a deduction, even if your usual pay is lower. Deductions normally stop when your pay falls below the relevant pay-period threshold.

If your total income for the tax year was below the annual threshold but deductions were taken, you can request a refund after the tax year ends. A refund is not automatic in that situation. The official repayment guidance explains pay-period calculations and refunds.

How do interest and write-offs affect the total?

Interest is added to the balance even when you are not earning enough to make repayments. The rate depends on the loan plan and can change. For example, Plan 5 interest is normally linked to the Retail Price Index, while Plan 2 interest can vary with income and is subject to the applicable cap. A larger balance does not by itself increase the income-based payroll deduction, but interest can affect how long a borrower remains in repayment and the total paid before the loan is cleared or written off. The Student Loans Company’s 2026–27 terms and conditions explain the interest rules.

Under current rules, Plan 2 loans are generally written off 30 years after the April the borrower was first due to repay; Plan 5 loans are generally written off after 40 years. Plan 1 and Plan 4 rules differ according to the borrower’s circumstances and loan history. Cancellation can also apply in some circumstances, including death or qualifying permanent disability. Check the official write-off guidance for your plan.

You can make voluntary extra repayments, but consider the decision carefully: if part of your balance would otherwise be written off, paying extra may not reduce the total you are required to pay. Thresholds and interest rates can change, so use the current figures when planning future payments.

Frequently asked questions

Do I repay if I am unemployed?

Ordinary income-based repayments stop if you stop working or your income falls below the applicable threshold. Interest can still accrue, and different rules can apply to an overpayment of student finance.

Can I repay an undergraduate and postgraduate loan at the same time?

Yes. If you have both types and your income is high enough, the undergraduate and postgraduate deductions can apply at the same time, using their respective thresholds and rates.

Can I pay off my loan early?

Yes. You can make voluntary repayments to the SLC, but assess whether you are likely to repay the balance before its write-off date and whether you have more pressing financial priorities.