This page explains Plan 4 student-loan repayments for the 2025/26 tax year and lets you work out your own repayment. Undergraduate loans for Scottish students (administered by SAAS / the Student Loans Company).
Plan 4 at a glance (2025/26)
| Plan 4 | |
|---|---|
| Repayment rate | 9% of income above the threshold |
| Annual threshold | £32,745 |
| Monthly threshold | £2,729 |
| Weekly threshold | £630 |
| Write-off | Written off 30 years after the April you first became due to repay (or at 65 for older loans). |
| Interest | Interest is the lower of RPI or the Bank of England base rate plus 1%. |
You repay 9% of everything you earn over £32,745 a year — nothing on the part of your income at or below the threshold.
Worked examples on Plan 4
| Gross salary | Over threshold | Repayment / year | Repayment / month | % of salary |
|---|---|---|---|---|
| £37,745 | £5,000 | £450.00 | £37.50 | 1.19% |
| £47,745 | £15,000 | £1,350.00 | £112.50 | 2.83% |
| £57,745 | £25,000 | £2,250.00 | £187.50 | 3.90% |
So on a salary of £47,745 a Plan 4 borrower repays £112.50 a month in 2025/26 — only 2.83% of the whole salary, because the first £32,745 is protected.
How Plan 4 repayments are collected
If you are employed, repayments come out of your pay through PAYE automatically once you earn over £2,729 in a month (SLC uses the per-period threshold, so a one-off bonus can trigger a deduction even if your annual pay is lower). If you are self-employed, repayments are calculated through Self Assessment. You only ever repay 9% of the slice above the threshold.
Plan 4 vs the other plans (2025/26)
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £26,065 | 9% |
| Plan 2 | £28,470 | 9% |
| Plan 4 (this page) | £32,745 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
You can be on the Postgraduate Loan at the same time as an undergraduate plan — that adds a separate 6% deduction above £21,000. Use the toggle in the calculator to model both together.
2025/26 and 2026/27
The Plan 4 threshold is £32,745 in 2025/26 and rises to £33,795 from 6 April 2026 (the 2026/27 tax year). This page uses the 2025/26 figure throughout.
Sources & as-of
- Repayment rate and threshold: GOV.UK — Repaying your student loan (what you pay).
- 2025/26 / 2026/27 thresholds: House of Commons Library CBP-10654.
- Write-off and interest basis: GOV.UK — Student loans terms & conditions 2025/26; interest-rate announcement (RPI 3.2%).
- Tax year 2025/26 (6 April 2025 to 5 April 2026). Page data as-of 2026-06-18. Confirm current figures on GOV.UK.