The Department for Education has announced on 10th August 2026 the annual update to the repayment thresholds for Plan 1 Income Contingent Student Loans
The repayment threshold for Plan 1 loans will rise to £28,005 from 6th April 2027 to 5th April 2028.
What are the different student loan repayment plans?
There are five student loan repayment plans for UK borrowers.
A borrower’s repayment plan is determined by where they lived when they took out their loan, when they started their course, and what type of course they studied.
- Plan 1 loans are those taken out between August 1998 and September 2012 by borrowers in England and Wales. All borrowers in Northern Ireland are also on plan 1.
- Plan 2 loans are those taken out for undergraduate courses and Postgraduate Certificates of Education (PGCE) since 1 September 2012 in Wales and between 1st September 2012 and 31st July 2023 in England.
- Postgraduate (sometimes referred to as Plan 3) loans are those taken out for master’s or doctoral courses by borrowers in England and Wales.
- Plan 4 loans are for all borrowers in Scotland.
- Plan 5 loans are for undergraduate and PGCE courses started by borrowers in England after 1st August 2023.
PAYadvice.UK 11/8/2026