This page explains Plan 5 student-loan repayments for the 2025/26 tax year and lets you work out your own repayment. Undergraduate loans for English students who started their course on or after 1 August 2023.
Plan 5 at a glance (2025/26)
| Plan 5 | |
|---|---|
| Repayment rate | 9% of income above the threshold |
| Annual threshold | £25,000 |
| Monthly threshold | £2,083 |
| Weekly threshold | £481 |
| Write-off | Written off 40 years after the April you first became due to repay. |
| Interest | Interest is set at RPI only (no margin above RPI). |
You repay 9% of everything you earn over £25,000 a year — nothing on the part of your income at or below the threshold.
Worked examples on Plan 5
| Gross salary | Over threshold | Repayment / year | Repayment / month | % of salary |
|---|---|---|---|---|
| £30,000 | £5,000 | £450.00 | £37.50 | 1.50% |
| £40,000 | £15,000 | £1,350.00 | £112.50 | 3.38% |
| £50,000 | £25,000 | £2,250.00 | £187.50 | 4.50% |
So on a salary of £40,000 a Plan 5 borrower repays £112.50 a month in 2025/26 — only 3.38% of the whole salary, because the first £25,000 is protected.
How Plan 5 repayments are collected
If you are employed, repayments come out of your pay through PAYE automatically once you earn over £2,083 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 5 vs the other plans (2025/26)
| Plan | Threshold | Rate |
|---|---|---|
| Plan 1 | £26,065 | 9% |
| Plan 2 | £28,470 | 9% |
| Plan 4 | £32,745 | 9% |
| Plan 5 (this page) | £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 5 threshold is £25,000 and is unchanged for 2026/27. 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.