Plan 1, Plan 2, Plan 4, Plan 5, Postgraduate — the name on your payslip decides your threshold, your interest, and when your loan is wiped. Here’s what each one actually means.
Your plan depends on where and when you studied. All undergraduate plans take 9% of income above a threshold; the Postgraduate Loan takes 6%. What differs is the threshold, the interest rules, and the write-off period — ranging from 25 years (Plan 1) to 40 years (Plan 5).
If you’re not sure which you’re on, your online student loan account will tell you.
“What plan am I on?” is the first thing anyone needs to answer before making any decision about their student loan — because every number that matters flows from it. Here’s each plan in plain English.
Not sure? Log in to your online student loan repayment account — it states your plan type directly, and your payslip usually shows the deduction labelled by plan.
The mechanics are similar — a percentage of income above a threshold, written off after a set period — but the details differ in ways that change how much you actually pay.
Thresholds are set by the government and updated periodically, so always check the current figure for your plan — but the rate (9%, or 6% for PGL) and the write-off period above are the structural features that rarely change.
But here’s the crucial point: if you won’t repay the loan in full, the interest rate barely matters. It changes your balance, not what comes out of your payslip — and the balance gets written off anyway.
Pick your plan and enter your balance and salary to see your repayments, likely write-off, and whether overpaying is worth it.
It’s very common to hold an undergraduate loan and a Postgraduate Loan together — say Plan 2 plus PGL. Each has its own threshold, and both deduct at the same time once you earn above them: 9% on the undergraduate portion and 6% on the postgraduate one. That can mean a 15% combined marginal deduction on income above both thresholds, which is worth knowing when you weigh up a pay rise or pension contribution.
Thresholds, interest caps and rules are reviewed by the government and can change year to year. Always confirm the current figures for your plan before making decisions.
It depends on where and when you studied. Broadly: Plan 1 for English/Welsh students before 2012 (and NI); Plan 2 for English/Welsh students 2012–2022; Plan 4 for Scottish students; Plan 5 for English students from 2023; and the Postgraduate Loan for master’s/doctoral funding. Your online account confirms it.
9% of income above the threshold on Plans 1, 2, 4 and 5, and 6% above the threshold on the Postgraduate Loan. If you have both an undergraduate and a postgraduate loan, both can be deducted at once.
Plan 1 is typically written off 25 years after you became liable to repay, Plan 2 and Plan 4 after 30 years, Plan 5 after 40 years, and the Postgraduate Loan after 30 years.
Yes. It’s common to have an undergraduate plan plus a Postgraduate Loan. Each has its own threshold and rate, and both are repaid simultaneously through payroll once you earn above the relevant thresholds.
This article is general information, not financial advice. It describes how UK student loan rules generally work as at the 2025/26 tax year; thresholds and rules change, and your plan may differ. Check your official student loan account and the latest government guidance for your figures.