What is the difference between a Plan 2 and Plan 5 student loan?

For graduates and students in England and Wales who want to compare Plan 2 and Plan 5 loans.

Applies to: England, Wales Last checked against official sources: 6 October 2026

Plan 2 and Plan 5 are student loan repayment plans with different start dates, thresholds and write-off dates.

Plan 2: English students who started undergraduate courses from 1 September 2012 to 31 July 2023, and Welsh students from 1 September 2012.
Plan 5: English students who started on or after 1 August 2023.
In 2026/27 you repay 9% of income over £29,385 (Plan 2) or £25,000 (Plan 5).
Plan 2 is written off after 30 years, Plan 5 after 40 years.
Plan 2 interest depends on income, up to 6%; Plan 5 is currently 4.1%.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Scotland: Check mygov.scot for Scotland
Northern Ireland: Check nidirect for Northern Ireland

Key facts

Plan 2 threshold: £29,385
Plan 5 threshold: £25,000
Both repay 9% over threshold
Write-off: 30 vs 40 years

What Plan 2 and Plan 5 are

Your student loan "plan" sets the rules for paying it back: when you start, how much you pay and when any balance left is cancelled. You do not choose your plan. It depends on where you lived and when your course started.

Who is on each plan

	Plan 2	Plan 5
England	Undergraduate or PGCE course started 1 September 2012 to 31 July 2023	Undergraduate or PGCE course started on or after 1 August 2023
Wales	Undergraduate or PGCE course started on or after 1 September 2012	Not used

Students who applied through the Student Awards Agency Scotland are on Plan 4. Courses in England and Wales that started before September 2012 are on Plan 1.

How much you repay in 2026/27

Both plans take 9% of your income above the threshold. The thresholds below are for the 2026/27 tax year (6 April 2026 to 5 April 2027).

Threshold	Plan 2	Plan 5
Yearly	£29,385	£25,000
Monthly	£2,448.75	£2,083.33
Weekly	£565.09	£480.76

If you earn under the threshold, you pay nothing.

Worked examples (2026/27)

Earning £30,000 a year:

Plan 2: £30,000 minus £29,385 is £615. 9% of £615 is about £55 a year (about £4.61 a month).
Plan 5: £30,000 minus £25,000 is £5,000. 9% of £5,000 is £450 a year (£37.50 a month).

Earning £40,000 a year:

Plan 2: 9% of £10,615 is about £955 a year (about £79.61 a month).
Plan 5: 9% of £15,000 is £1,350 a year (£112.50 a month).

These figures assume steady pay. Your employer works out deductions each pay period.

Interest

Plan 2: while studying, interest is usually RPI (a measure of inflation) plus 3%, with a current cap of 6%. After you leave, it depends on your income:

Annual income	Plan 2 interest now
£29,385 or less	4.1%
£29,386 to £52,884	4.1% plus up to 1.9%
£52,885 or more	6%

Plan 5: currently 4.1%, whatever your income.

Interest rates can change, so check GOV.UK for the latest rate.

When the loan is written off

Plan 2: 30 years after the April you were first due to repay.
Plan 5: 40 years after the April you were first due to repay.

Anything you still owe at that point is cancelled.

Related guides

Where these figures come from

Get it done

This takes you to the official service, which is free to use.

Check your repayment plan

Common questions

How do I know if I am on Plan 2 or Plan 5?

It depends on when your course started. English undergraduates who started from 1 September 2012 to 31 July 2023 are on Plan 2, and those starting on or after 1 August 2023 are on Plan 5.

Do I pay more on Plan 5?

At the same income you repay more each year on Plan 5, because the threshold is lower: £25,000 compared with £29,385 in 2026/27.

When is a Plan 5 loan written off?

40 years after the April you were first due to repay.

Official sources

1.Repaying your student loan: which repayment plan you are on (GOV.UK)www.gov.uk/repaying-your-student-loan/which-repayment-plan-you-are-on
2.Rates and thresholds for employers 2026 to 2027 (GOV.UK)www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
3.When your student loan gets written off or cancelled (GOV.UK)www.gov.uk/repaying-your-student-loan/when-your-student-loan-gets-written-off-or-cancelled
4.Repaying your student loan: what you pay (GOV.UK)www.gov.uk/repaying-your-student-loan/what-you-pay

Checked against GOV.UK on 6 October 2026

Ask about your situation

Please don't include your name, address, National Insurance number or health details. See our privacy notice.