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:

• Plan 1 — £26,900

• Plan 2 — £29,385

• Plan 4 — £33,795

• Plan 5 — £25,000

• Postgraduate Loan — £21,000

Repayment Rates

Repayment rates remain unchanged:

• Plan 1, 2, 4 and 5 — 9% of earnings above the relevant threshold

• Postgraduate Loans — 6% of earnings above the threshold

These deductions will continue to be taken through PAYE for employed borrowers.

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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?

• A new Plan 5 checkbox has been added to both the PDF and online versions

• 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:

• identify the correct repayment plan

• understand how repayments work when they have more than one loan type

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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.