Which student loan plan you’re on genuinely changes how much comes out of your pay each month — and it’s not always obvious which one applies to you.
The plans at a glance
Plan 1 (pre-2012 English/Welsh loans, or Scottish/NI loans): repay 9% above £26,065. Plan 2 (English/Welsh loans 2012–2023): repay 9% above £27,295. Plan 4 (Scottish loans from 2021): repay 9% above £31,395. Plan 5 (English loans from 2023 onward): repay 9% above £25,000. Postgraduate Loan: repay 6% above £21,000, and can run alongside an undergraduate plan.
Why the threshold matters more than the rate
The repayment rate (9%, or 6% for postgrad) is the same regardless of plan — what actually changes your monthly deduction is which threshold applies, since it determines how much of your income is even in scope.
Not sure which plan you’re on
Check your student loan account directly at gov.uk, or look for the plan type on your annual statement — guessing wrong can mean under- or over-paying for months before it’s noticed.
See the effect on your take-home with the Payslp salary calculator.
What happens if you have loans on more than one plan
If you took out loans under different plan types (for example an old Plan 1 loan plus a Postgraduate Loan), both are repaid simultaneously, each calculated against its own threshold — meaning you could be making two separate deductions at once from the same pay.
Frequently asked questions
Does the loan ever get written off?
Yes — each plan has a set write-off period (varying by plan, typically 25–40 years after you became eligible to repay), after which any remaining balance is cancelled regardless of how much is left.
Can I repay early to save on interest?
Yes, voluntary overpayments are allowed — worth checking the current interest rate on your specific plan to judge whether early repayment is genuinely worthwhile compared with other uses for the money.