Plan 2 Student Loan: 2025-26 & 2026-27
HMRC income-contingent repayments · 9% above £29,385 (2026-27)
Quick answer
£955/year on £40,000 (2026-27)
Threshold: £28,470 (2025-26) → £29,385 (2026-27) · Rate: 9%
Who this plan is for
English students who started undergraduate courses between 1 September 2012 and 31 July 2023, and Welsh students who started on or after 1 September 2012.
- Started an undergraduate course in England on or after 1 September 2012 but before 1 August 2023
- Funded by Student Finance Wales for an undergraduate or PGCE course started on or after 1 September 2012 (Wales has no Plan 5)
- Took out Advanced Learner Loans (FE loans for Level 3-6 courses)
- EU students who studied in England during this window, or in Wales from 1 September 2012
Plan 2 repayments by salary
All figures computed live from HMRC-published thresholds. 9% of income above £29,385 (2026-27).
| Gross salary | 2025-26 annual | 2026-27 annual | 2026-27 monthly |
|---|---|---|---|
| £28,470 | £0 | £0 | £0 |
| £29,385 | £82 | £0 | £0 |
| £30,000 | £137 | £55 | £5 |
| £40,000 | £1,037 | £955 | £80 |
| £50,000 | £1,937 | £1,855 | £155 |
| £75,000 | £4,187 | £4,105 | £342 |
| £100,000 | £6,437 | £6,355 | £530 |
Interest rate
Plan 2 interest is variable: from RPI alone for those earning under the threshold, scaling linearly up to RPI + 3% at the upper earnings band. For the 2026-27 academic year (from 1 September 2026) the government has capped the maximum rate at 6%, so no Plan 2 borrower will pay more than that even if RPI + 3% would otherwise be higher.
Current rates change each September (RPI reset). See the GOV.UK student loan repayment thresholds and interest rates page for the latest.
Writeoff
Plan 2 loans are written off 30 years after the April you were first due to repay.
Use the full calculator
Want to combine Plan 2 with another plan, test different salaries, or model a pay rise? Open the full UK Student Loan Repayment Calculator — supports all plans simultaneously and toggles between tax years. For every plan's threshold history since 2021/22 in one table, see the student loan repayment thresholds reference.
Other student loan plans
Frequently asked questions
What is the Plan 2 threshold for 2026-27?
£29,385 per year (£2,448.75/month, £565.09/week). You only repay 9% on the portion of your gross income that exceeds this figure. The 2025-26 threshold was £28,470, and HMRC applies the new threshold from 6 April 2026.
How much do I pay on a £40,000 salary under Plan 2?
At £40,000 for 2026-27, you repay £955 per year (£80 per month). The calculation is 9% × (£40,000 − £29,385 threshold) = £955. Repayments stop automatically if your income drops below the threshold.
Who qualifies for the Plan 2?
English students who started undergraduate courses between 1 September 2012 and 31 July 2023, and Welsh students who started on or after 1 September 2012.
I graduated in 2020 with an English undergraduate loan. Which plan?
Plan 2. English undergraduate courses started from September 2012 through July 2023 are Plan 2, and so are Welsh-funded courses started from September 2012 onwards.
Will I ever fully repay my Plan 2 loan?
It depends on your earnings. The balance is written off 30 years after the April you were first due to repay, so you only clear it if your repayments over that time cover the balance plus the interest (up to RPI + 3%). Because repayment is 9% of income over the threshold, not a fixed instalment, treat it as an extra marginal rate rather than a traditional loan balance.
Do Plan 2 overpayments make sense?
Only if you are confident you will clear the full balance within the 30 years. If your projected lifetime repayments are less than the outstanding balance, overpaying is wasted money — the unpaid portion would have been written off anyway. Run the numbers on the full calculator before putting extra cash in.
When is my Plan 2 written off?
Plan 2 loans are written off 30 years after the April you were first due to repay.