Analyse student loan repayments, marginal tax rates, take-home pay, and lifetime costs for UK graduates. How repayments work by loan plan?
Plan 1: For borrowers who started before September 2012 in England/Wales, or studied in Scotland/Northern Ireland. Repayments are 9% of income above £27,039 (2026-27). Interest is the lower of RPI or Bank of England base rate plus 1%. Written off after 25 years.
Plan 2: For borrowers who started between September 2012 and July 2023 in England/Wales. Repayments are 9% of income above £29,385 (2026-27). Interest is RPI while studying, then RPI to RPI+3% based on income. Written off after 30 years. Note: Autumn Budget 2025 froze thresholds for three years—see the analysis dashboard.
Plan 4: For Scottish students who started after September 1998. Repayments are 9% of income above £33,970 (2026-27). Interest is the lower of RPI or Bank of England base rate plus 1%. Written off after 30 years.
Plan 5: For borrowers starting from August 2023 in England. Repayments are 9% of income above £25,000 (2026-27). Interest is RPI only. Written off after 40 years.
Postgraduate loan: A separate loan for Master's or PhD courses (from 2016/2018). Repayments are 6% of income above £22,722 (2026-27), collected alongside any undergraduate plan. Interest is RPI + 3%. Written off after 30 years. The repayment threshold has been frozen at £21,000 since 2016.
