Plan 5 is the new English student loan for courses started from September 2023, and the very first deductions reach payslips from April 2026. Repayments are 9% of everything you earn above a frozen £25,000 threshold — lower than Plan 2, so graduates start paying sooner. Enter your salary to see the monthly and annual deduction and what it does to your take-home.
6 min read·Updated Wed Aug 19 2026 00:00:00 GMT+0000 (Coordinated Universal Time)·🇬🇧 UK
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Key takeaways
Key takeaways · 2026/27
Plan 5 repayments are 9% of income above £25,000, a threshold frozen until 2027.
The first ever Plan 5 deductions appear on payslips from April 2026.
You are on Plan 5 if you are an English student who started a course on or after 1 September 2023.
Anything not repaid is written off after 40 years — 10 longer than Plan 2's 30.
How it works
Plan 5: the new student loan hitting payslips in 2026
If you started an English undergraduate course on or after 1 September 2023, you are on Plan 5 — and April 2026 is the first time any Plan 5 borrower is asked to repay. Because the threshold is lower than the Plan 2 loan most people have heard about, a lot of new graduates will see a student-loan line on their payslip earlier, and at a lower salary, than they expected.
The rule itself is simple: you repay 9% of everything you earn above £25,000 a year. Nothing below £25,000 counts. The deduction is taken through PAYE automatically, alongside your tax and National Insurance.
Annual salary
Income over £25,000
Annual repayment (9%)
Per month
£26,000
£1,000
£90
£7.50
£30,000
£5,000
£450
£37.50
£35,000
£10,000
£900
£75.00
£45,000
£20,000
£1,800
£150.00
Plan 5 vs Plan 2 — why Plan 5 costs more at the same salary
Both plans deduct 9% above a threshold, but the threshold is where they part ways. Plan 2 kicks in at £29,385; Plan 5 kicks in at £25,000. So a graduate on £30,000 repays £450 a year on Plan 5 but only about £55 on Plan 2. Plan 5 also has a 40-year write-off period versus Plan 2's 30 years, meaning repayments can continue for a decade longer before any remaining balance is cleared.
The catch in one line: the £25,000 threshold is frozen. As pay rises with inflation, more of your salary sits above the line each year, so your repayment quietly grows in real terms even without a promotion.
Which plan am I on?
Your plan is set by when and where you studied, not by choice:
Plan 5 — English undergraduate course started on or after 1 September 2023.
Plan 2 — English course started between September 2012 and July 2023.
Plan 1 — courses started before September 2012 (and most Northern Irish students).
Plan 4 — Scottish students.
Postgraduate loan — a master's or doctoral loan, repaid at 6% above £21,000, which can run alongside any undergraduate plan.
The earliest Plan 5 repayments are collected from 6 April 2026. Plan 5 covers English undergraduate courses started on or after 1 September 2023, and the rules never collect before the April after you leave your course, so April 2026 is the first point at which any Plan 5 borrower is due to repay. If you earn under £25,000 you will not see a deduction even then.
What is the Plan 5 repayment threshold for 2026/27?
The Plan 5 threshold is £25,000 a year (about £2,083 a month or £480 a week). You repay 9% of everything you earn above it. The threshold is frozen until at least April 2027, which means as wages rise more of your pay falls above the line — a slow real-terms increase in what you repay.
How is Plan 5 different from Plan 2?
Both charge 9% above their threshold, but the numbers differ. Plan 2's threshold is £29,385, so Plan 2 borrowers start repaying at a higher salary. Plan 5's is lower at £25,000, so Plan 5 graduates begin sooner and repay more at the same salary. Plan 5 is also written off after 40 years rather than 30, so more borrowers repay for longer. Which one you are on depends on when your course started, not on choice.
How much will I repay on Plan 5?
Take your salary, subtract £25,000, and multiply by 9%. On £30,000 that is 9% × £5,000 = £450 a year, about £37.50 a month. On £35,000 it is £900 a year (£75 a month). The calculator above works this out alongside your income tax, National Insurance and any other loan plans so you see the true take-home.
Which student loan plan am I on?
English students starting an undergraduate course from 1 September 2023 are on Plan 5. Those who started between 2012 and 2022 are on Plan 2; before 2012, Plan 1. Scottish and Northern Irish undergraduates are on Plan 1 or Plan 4 (Scotland). A master's or doctoral loan is a separate Postgraduate loan that can run alongside any of these — see the dual Plan 2 + Postgraduate calculator.
Disclaimer: Figures are estimates based on 2026/27 rates and rules and may change. Verify with HMRC or a qualified adviser before making financial decisions.