Student Loan Plan 5 Repayments Begin April 2026 for Post-August 2023 Starters
A new generation of UK students who started university from August 2023 onwards will begin repaying Student Loan Plan 5 from 6 April 2026. The scheme features a lower repayment threshold (£25,000) and 40-year write-off period.
Plan 5 will be relevant to employees who applied to Student Finance England for their loan and started courses from August 2023 onwards. The first repayments under plan 5 will be made from 6 April 2026, and employers will start to receive student loan start notices from March 2026.
Plan 5 is a fundamentally different loan scheme from its predecessors. Student loan repayment thresholds 2026/27: Plan 1 £26,900 · Plan 2 £29,385 · Plan 4 £33,795 · Plan 5 £25,000 · Postgrad £21,000. Borrowers repay 9% of earnings above their threshold. Unlike Plan 2's complex interest structure, Plan 5: RPI (during study and repayment — the interest rate was simplified for Plan 5).
Key differences from earlier plans
- Lowest repayment threshold at £25,000 per year
- 40-year write-off period (longest of all plans)
- RPI-only interest, no income-based uplift
- Borrowers face deductions sooner and for longer
What this means for you
If you arrived in the UK in 2023–2024 and are on Plan 5, your employer will automatically deduct 9% of earnings above £25,000 from your payslip from April 2026. Unlike other plans, you cannot avoid repayments by earning below higher thresholds. Plan 5 borrowers earning £35,000 face approximately £75 per month in repayments—higher than Plan 2 borrowers at the same salary. Factor this into your salary negotiations and budget planning.
Sources
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