If you’ve searched “student loan threshold 2025”, you probably want one thing: the number where repayments start — and what it means on your payslip.
This guide gives you the 2025/26 thresholds, quick examples (so you can sanity-check payroll deductions), and a few “gotchas” that catch people out — like bonus months, two jobs, and having a Postgraduate Loan.
Quick reassurance: the threshold is not a cliff edge. You don’t suddenly repay 9% of your whole salary. You repay a percentage of the bit above the threshold.
If you want the full “how the maths works” walkthrough, keep this open in a second tab: How Much Do You Repay on a Student Loan?
The student loan thresholds for 2025/26 (the bit you came for)
These thresholds apply in the 2025/26 tax year (the one that runs from April to April).
| Plan type | Yearly threshold | Monthly threshold | Weekly threshold |
|---|---|---|---|
| Plan 1 | £26,065 | £2,172 | £501 |
| Plan 2 | £28,470 | £2,372 | £547 |
| Plan 4 | £32,745 | £2,728 | £629 |
| Plan 5 | £25,000 | £2,083 | £480 |
| Postgraduate Loan | £21,000 | £1,750 | £403 |
What it means: you only repay when your pay for that period (weekly or monthly) goes above your plan’s threshold.
Not sure which plan you’re even on? Start here: When Do You Start Repaying Your Student Loan?
How much do you repay once you’re over the threshold?
- Plan 1 / 2 / 4 / 5: you repay 9% of income above the threshold
- Postgraduate Loan: you repay 6% of income above the threshold
So the threshold is basically the line where repayments start — and the percentage tells you how fast repayments rise after that.
If you’d like the “payslip-friendly” version of this (with more examples), link: How Much Do You Repay on a Student Loan?
Quick examples (so you can check your payslip in 30 seconds)
Example 1: Plan 2 on £30,000 salary
- Monthly pay: £30,000 ÷ 12 = £2,500
- Plan 2 monthly threshold: £2,372
- Amount above threshold: £2,500 − £2,372 = £128
- Repayment: 9% of £128 = £11.52 (usually rounded down on payroll)
So you’d expect about £11/month.
Example 2: Plan 1 on £33,000 salary
- Monthly pay: £33,000 ÷ 12 = £2,750
- Threshold: £2,172
- Above threshold: £578
- 9% of £578 = £52.02 (around £52/month)
Example 3: Postgraduate Loan on £28,800 salary (no other plan)
- Monthly pay: £28,800 ÷ 12 = £2,400
- PGL threshold: £1,750
- Above threshold: £650
- 6% of £650 = £39/month
If you want a bigger set of salary examples (and a “why does it change month to month?” explainer), link: How Much Do You Repay on a Student Loan?
Why did I repay this month if I’m “under the threshold” overall?
Because payroll doesn’t look at your whole year. It looks at that pay period.
So you can be under the yearly threshold overall, but still repay in a month where you got:
- a bonus
- overtime
- backpay
- a commission spike
If your annual income ends up below the yearly threshold, you may be able to claim a refund after the tax year finishes.
That’s exactly what this guide covers (and it’s a common money-back win): Student Loan Refunds: How to Claim Back Overpayments
If you have more than one job, here’s the “gotcha”
Student loan deductions are taken per job, not based on your combined income.
So you might have two jobs that together take you over a yearly threshold — but neither job pays enough individually in a month to trigger deductions.
That’s normal (and it’s one reason people feel confused when they switch between PAYE and Self Assessment).
If you’re self-employed or do Self Assessment, HMRC looks at your total income across the year, which can produce a bill even if PAYE deductions were low.
If you want a clean explanation of “what you repay and when,” link: When Do You Start Repaying Your Student Loan?
If you have a Postgraduate Loan AND an undergraduate loan
This is where repayments can feel punchier.
A Postgraduate Loan repayment (6%) can sit on top of your undergraduate repayment (9%) once you’re above both thresholds — meaning some people effectively repay 15% of income above the relevant lines.
If you’re thinking “hang on… is my deduction too high?” start with this check: How Much Do You Repay on a Student Loan?
Does the threshold change student loan interest?
Not directly.
Your repayment threshold decides when you start repaying. Interest is its own thing, and it can still be added even when you’re not repaying (especially while studying).
If interest feels like the most confusing part of the whole system, this will calm it down quickly: How Does Student Loan Interest Work?
Will this affect my credit score or my mortgage?
This is one of the most searched worries — and it’s usually less dramatic than people fear.
Student loan repayments can affect affordability (because it’s a monthly deduction), but they don’t work like typical consumer debt in how they appear and how lenders view them.
If that’s the real reason you’re Googling thresholds, read: Do Student Loans Affect Your Credit Score or Mortgage?
The “panic paragraph” (bookmark this)
If seeing these numbers makes you feel worse, not better: you’re not alone.
Most people don’t “pay off” their student loan in the way we think about normal debt — and the system is designed to behave more like a repayment-on-income.
If you want the calm, human version of that truth: Feeling Anxious About Your Student Loan? Read This First
And if you’re thinking about making extra payments, read this first so you don’t accidentally chuck money at something that would have been wiped anyway: When Are Student Loans Written Off?
FAQs
What exactly is the student loan threshold?
It’s the income level where repayments start. You only repay a percentage of income above the threshold, not your whole salary.
Are thresholds the same across the UK?
They depend on your plan type, which is linked to where you lived and when you started your course. Plan 4 is commonly associated with Scottish borrowers. If you’re unsure, check your plan first.
Why do repayments change month to month?
Because deductions are based on each pay period (monthly/weekly), so bonus months and overtime can push you over the threshold temporarily.
Can I get money back if I shouldn’t have repaid?
Sometimes, yes — especially if your annual income ends up below the threshold, or you’ve overpaid. See: Student Loan Refunds
