Student Loan Interest Rates & Thresholds (2026/27)
Last updated: . Source: GOV.UK & SLC
Plan 1
9% of earnings above thresholdIncome-contingent loans funded by England or Wales before September 2012, or by Northern Ireland.
Interest: The lower of RPI or the Bank of England base rate + 1%
Written off: 25 years after the April you were first due to repay (or age 65 if your first loan payment was before 1 September 2006)
Plan 2
9% of earnings above thresholdUndergraduate or PGCE loans funded by England for courses starting September 2012 to July 2023, or Wales from September 2012 onwards. Also English Higher Education Short Course Loans.
Interest: RPI + 3% while studying, then RPI to RPI + 3% based on income, subject to the current cap
Written off: 30 years after the April you were first due to repay
Plan 4
9% of earnings above thresholdUndergraduate or postgraduate loans funded by the Student Awards Agency Scotland.
Interest: The lower of RPI or the Bank of England base rate + 1%
Written off: 30 years after the April you were first due to repay (or, if your first loan payment was before 1 August 2007, age 65 or 30 years - whichever comes first)
Plan 5
9% of earnings above thresholdUndergraduate, PGCE or Advanced Learner Loans funded by England for courses starting on or after 1 August 2023.
Interest: RPI only (no income-based margin)
Written off: 40 years after the April you were first due to repay
Postgraduate Loan
6% of earnings above thresholdMaster's or Doctoral Loan borrowers (England/Wales).
Interest: RPI + 3%, subject to the current cap; not based on income
Written off: 30 years after the April you were first due to repay
Key Dates
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| Event | When |
|---|---|
| Repayments start | The April after you leave your course (or April 4 years after starting, if part-time). |
| Interest starts | From the day your first payment is made to your university or bank account. |
| Thresholds update | Every April, based on average earnings growth (Plan 2) or RPI (Plans 1 & 4). Plan 5 is frozen at £25,000 until 2027. |
| Rates update | Every September, based on the previous March's RPI figure. |
| Unpaid balance written off | 25 years (Plan 1), 30 years (Plans 2, 4, Postgrad) or 40 years (Plan 5) after first due to repay. |
Historical data used by the calculator
With historical data selected, the calculator uses dated loan rates and monthly inflation figures where verified. These have different coverage:
- Inflation: observed ONS monthly price indices from Jan 1987 to Aug 2026. These index ratios adjust values into today’s money. The ONS 12-month RPI series is available from Jan 1987 to Aug 2026.
- Loan interest: dated SLC rates through Sept 2026. The verified history begins in Sept 1998 for Plan 1 and Scottish loans, Sept 2012 for Plan 2, Sept 2016 for postgraduate loans, and Aug 2023 for Plan 5. Scottish borrowers used Plan 1 before moving to Plan 4 on 6 April 2021.
- Other periods: your entered rate and RPI assumptions apply outside verified coverage, including later months. Manual interest edits take priority. Each result identifies the figures and assumptions used for that estimate.
Loan rates use published effective dates, including caps and base-rate changes; they are not set from each month’s inflation reading. Changes within a month are weighted by calendar days. Repayments and balances remain monthly estimates, so they do not exactly reproduce daily SLC statement postings.
Monthly sources: ONS RPI price index, ONS 12-month RPI and the SLC interest histories linked below. Data checked .
Repayment thresholds (annual)
Tax years run from 6 April to 5 April. Plan 5 repayments started in April 2026.
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| Tax Year | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgrad |
|---|---|---|---|---|---|
| 2026/27 | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 |
| 2025/26 | £26,065 | £28,470 | £32,745 | — | £21,000 |
| 2024/25 | £24,990 | £27,295 | £31,395 | — | £21,000 |
| 2023/24 | £22,015 | £27,295 | £27,660 | — | £21,000 |
| 2022/23 | £20,195 | £27,295 | £25,375 | — | £21,000 |
| 2021/22 | £19,895 | £27,295 | £25,000 | — | £21,000 |
Interest rates at 1 September
This reference table shows September snapshots. Rates can change within the year. The historical calculator uses the verified dated changes instead; its yearly schedule shows the average of the rates applied in that year’s months.
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| September year | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgrad |
|---|---|---|---|---|---|
| 2026/27 | 4.1% | 6% (max) | 4.1% | 4.1% | 6% (max) |
| 2025/26 | 3.2% | 6.2% (max) | 3.2% | 3.2% | 6.2% (max) |
| 2024/25 | 4.3% | 7.3% (max) | 4.3% | 4.3% | 7.3% (max) |
| 2023/24 | 6.25% | 7.3% (max) | 6.25% | 7.3% | 7.3% (max) |
| 2022/23 | 2.75% | 6.3% (max) | 2.75% | — | 6.3% (max) |
| 2021/22 | 1.1% | 4.2% (max) | 1.1% | — | 4.2% (max) |
Historical sources: repayment thresholds, Plan 1 interest, Plan 2 interest, Plan 4 interest, Plan 5 interest and postgraduate interest.
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