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.

2026/27 Tax Year

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.

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)

💡 Calculator Insight

🔧Plan 4 has the most generous threshold, so Scottish Plan 4 borrowers keep more take-home pay than Plan 2 borrowers at the same salary. Pick the right plan in our calculator to see the exact gap.

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.