Student Loan Plan Comparison: Plan 1 vs 2 vs 4 vs 5
The plan you're on changes how much leaves your payslip every month. Here are the 2026/27 thresholds and rates side by side, plus how a Postgraduate Loan stacks on top.
Repayment Thresholds & Rates (2026/27)
All main plans deduct 9% above the threshold; Postgraduate Loans add 6% on top. The threshold is what really moves your take-home figure. Thresholds below follow the official Student Loan terms and conditions 2026/27 on GOV.UK.
| Plan | Who | Threshold | Rate |
|---|---|---|---|
| Plan 1 | Pre-2012 England/NI & all Scottish/NI older loans | £26,900 | 9% |
| Plan 2 | 2012–2022 England/NI | £29,385 | 9% |
| Plan 4 | Scottish students (post-1998) | £33,795 | 9% |
| Plan 5 | 2023+ England/NI | £25,000 | 9% |
| PG Loan | Master's / Doctoral | £21,000 | 6% (extra) |
Worked Example: £30,000 Salary
| Plan | Annual deduction | Monthly |
|---|---|---|
| Plan 1 (£26,900+) | ≈ £279 | ≈ £23 |
| Plan 4 (£33,795+) | £0 (below threshold) | £0 |
| Plan 2 (£29,385+) | ≈ £55 | ≈ £5 |
| Plan 5 (£25,000+) | ≈ £450 | ≈ £38 |
Read the full student loan essential guides for write-off rules and interest rates per plan.
Adding a Postgraduate Loan
A PG Loan applies 6% above £21,000 on top of your undergraduate 9%. On a £30,000 salary that's an extra ≈ £540/year, or about £45/month, before any undergraduate deduction.
Frequently asked questions
Which student loan plan has the highest threshold in 2026/27?
Plan 1 has the highest repayment threshold at £26,900, followed by Plan 4 at £33,795, Plan 5 at £25,000 and Plan 2 at £29,385. A higher threshold means you start repaying later, so less comes out of your monthly take-home pay.
What repayment rate do the plans use?
Plan 1, Plan 2, Plan 4 and Plan 5 all deduct 9% of earnings above their threshold. Postgraduate (Master's / Doctoral) loans deduct a further 6% on top, also above their own threshold.
Can I be on more than one plan at once?
Yes. It is common to have a Plan 2 (or Plan 5) undergraduate loan plus a Postgraduate Loan, in which case both 9% and 6% deductions apply simultaneously above their respective thresholds. Our calculator models both together.