Student Loan Plan 2/5 Repayment
UK Student Loan Plan 2: 9% over £27 295. Plan 5: 9% over £25 000 (40-year term). Plus Postgrad 6% over £21 000.
| Gross salary | — |
| Plan threshold | — |
| Repayment rate | — |
| Income above threshold | — |
| Annual repayment | — |
| Monthly via PAYE | — |
UK student loans are repaid via PAYE at 9% (6% postgrad) of income above a threshold. Plan 5 (post-August 2023 students) has lower threshold but longer 40-year term. All plans written off after a set period regardless of remaining balance.
Plan-by-Plan Differences
Plan 1 (pre-2012 + Scotland/NI ongoing): 9% over £24 990, write-off age 65 or 25 years. Plan 2 (England/Wales 2012+): 9% over £27 295, 30 years. Plan 4 (Scotland 2007+): 9% over £31 395, 30 years. Plan 5 (Aug 2023+): 9% over £25 000, 40 years. Postgrad: 6% over £21 000.
Voluntary Repayments Rarely Worth It
Plan 2 interest is RPI + up to 3% — currently ~4-7%. If you'd be better investing the money elsewhere (S&S ISA averaging 5-7%), don't voluntarily repay. Only worth repaying if you'll fully clear before write-off.
Multiple Plans
If you have both Plan 2 and Postgrad, both deducted simultaneously. Combined PAYE deduction can be 15% on income over thresholds. Each plan tracked separately.
Last updated May 2026. Sources: Gov.uk Student Loans.