The Department for Education has announced the student loan and postgraduate loan thresholds and repayment rates that will apply from 6 April 2026 for the 2026–27 tax year.
Updated Repayment Thresholds (from 6 April 2026)
The income thresholds above which repayments begin are:
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Plan 1 — £26,900
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Plan 2 — £29,385
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Plan 4 — £33,795
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Plan 5 — £25,000
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Postgraduate Loan — £21,000
Repayment Rates
Repayment rates remain unchanged:
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Plan 1, 2, 4 and 5 — 9% of earnings above the relevant threshold
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Postgraduate Loans — 6% of earnings above the threshold
These deductions will continue to be taken through PAYE for employed borrowers.
Changes to the Student Loan Starter Checklist
Ahead of the 6 April 2026 tax year, the student loan starter checklist (including the expat version) is being updated. The changes reflect the introduction of Plan 5 and aim to reduce confusion for borrowers with multiple loan types.
What’s Changing?
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A new Plan 5 checkbox has been added to both the PDF and online versions
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In the online checklist, employees can now select only one undergraduate plan (Plan 1 or 2 or 4 or 5)
- Employees can still select a postgraduate loan in addition to an undergraduate plan
Additional guidance has also been added to help borrowers:
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identify the correct repayment plan
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understand how repayments work when they have more than one loan type
Guidance for Employers
Updated student loan and postgraduate loan repayment guidance for employers will be published on 6 April 2026, ensuring payroll teams have the latest information ahead of the new tax year.
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