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Student loan plans

Repayments depend on your income and loan plan. Each payday, you repay 9% of pay above your plan’s threshold, or 6% for a postgraduate loan. The percentage applies to pay above the threshold, not your outstanding balance.

Thresholds for 2026/27
PlanThreshold a yearRate above it
Plan 1, England and Wales before September 2012, and Northern Ireland£26,900.009%
Plan 2, England and Wales from September 2012 to July 2023£29,385.009%
Plan 4, Scotland£33,795.009%
Plan 5, England from August 2023, first repayments April 2026£25,000.009%
Postgraduate loan£21,000.006%

Two loans at once

With a Plan 1 and a Plan 2 loan, or any two undergraduate plans, the employer takes one 9% deduction above the lower threshold and the Student Loans Company splits it. A postgraduate loan is separate and its 6% is taken on top, so a graduate with Plan 2 and a postgraduate loan pays 15% on pay above £29,385.00 and 6% on the slice between £21,000.00 and that.

Rounding and pay basis

The deduction is rounded down to a whole pound each pay period, so a monthly figure of £123.99 is taken as £123. Because it is based on the pay that counts for National Insurance, salary sacrifice reduces it, but a net pay or relief at source pension contribution does not.

Your own figures

The example below uses Plan 2. Open Student loan to choose your plan.

Your salary before tax, National Insurance and pension payments are taken off.
IncomeDividends from your own company or from shares outside an ISA are taxed on top of your pay.

£2,351 a month in your pocket

£28,215 a year. You keep 81% of £35,000.

Where your income goesYou keep: £28,215 a year, 80.6%. Income tax: £4,486 a year, 12.8%. National Insurance: £1,794 a year, 5.1%. Student loans: £505 a year, 1.4%.

Of £35,000 a year

Annual amounts, using 2026/27 rates. Pension excludes employer payments and provider tax relief.

Where you live

Scotland sets its own income tax bands; Wales and Northern Ireland match England.

Anything else?

Student loanPlan 2
Which loans are you repaying?

Repayments start above £29,385.00 a year for Plan 2. With two undergraduate loans one 9% deduction covers both.

The full breakdown

YearMonthWeek
Pay£35,000.00£2,916.67£673.08
Income tax-£4,486.00-£373.83-£86.27
National Insurance-£1,794.40-£149.53-£34.51
Student loan-£505.00-£42.08-£9.71
In your pocket£28,214.60£2,351.22£542.59
Payroll deduction rate
19.4%
Personal allowance
£12,570.00
Employer National Insurance
£4,500.00
Cost to your employer
£39,500.00
Income tax on your pay by band
BandAmountRateTax
basic rate£22,430.0020%£4,486.00
Totals£35,000.0012.82%£4,486.00

The total rate is income tax divided by gross annual income. It excludes National Insurance and pension deductions.