Plan 1 Student Loan: 2025-26 & 2026-27
HMRC income-contingent repayments · 9% above £26,900 (2026-27)
Quick answer
£1,179/year on £40,000 (2026-27)
Threshold: £26,065 (2025-26) → £26,900 (2026-27) · Rate: 9%
Who this plan is for
English/Welsh students who started university before 1 September 2012, and all Northern Irish students (any start date).
- Started an undergraduate course in England or Wales before 1 September 2012
- Started an undergraduate course in Northern Ireland at any time (including now)
- EU students who studied in England, Wales, or Northern Ireland before September 2012
Plan 1 repayments by salary
All figures computed live from HMRC-published thresholds. 9% of income above £26,900 (2026-27).
| Gross salary | 2025-26 annual | 2026-27 annual | 2026-27 monthly |
|---|---|---|---|
| £26,065 | £0 | £0 | £0 |
| £26,900 | £75 | £0 | £0 |
| £30,000 | £354 | £279 | £23 |
| £40,000 | £1,254 | £1,179 | £98 |
| £50,000 | £2,154 | £2,079 | £173 |
| £75,000 | £4,404 | £4,329 | £361 |
| £100,000 | £6,654 | £6,579 | £548 |
Interest rate
Plan 1 interest is the lower of Bank of England base rate + 1% or RPI. It is usually the cheapest plan to hold.
Current rates change each September (RPI reset). See the GOV.UK student loan repayment thresholds and interest rates page for the latest.
Writeoff
Plan 1 loans are written off 25 years after the April you were first due to repay, or when you turn 65 (whichever is earlier, for pre-2006 loans).
Use the full calculator
Want to combine Plan 1 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.
Other student loan plans
Frequently asked questions
What is the Plan 1 threshold for 2026-27?
£26,900 per year (£2,242/month, £517/week). You only repay 9% on the portion of your gross income that exceeds this figure. The 2025-26 threshold was £26,065, and HMRC applies the new threshold from 6 April 2026.
How much do I pay on a £40,000 salary under Plan 1?
At £40,000 for 2026-27, you repay £1,179 per year (£98 per month). The calculation is 9% × (£40,000 − £26,900 threshold) = £1,179. Repayments stop automatically if your income drops below the threshold.
Who qualifies for the Plan 1?
English/Welsh students who started university before 1 September 2012, and all Northern Irish students (any start date).
I started uni in England in 2010. Which plan am I on?
Plan 1. The Plan 1/Plan 2 split in England and Wales sits at 1 September 2012 — courses starting before that date are Plan 1, regardless of how long you took to graduate.
Can I be on both Plan 1 and Plan 2?
Yes. If you took an undergraduate loan before September 2012 (Plan 1) and then returned for another course after September 2012 (Plan 2), you will repay both. HMRC collects a single 9% deduction but splits it between the two balances — Plan 1 is paid off first because its threshold is lower.
How is Plan 1 different from Plan 2?
Plan 1 has a lower repayment threshold (so you start paying sooner), but its interest rate is much lower — capped at Bank of England base rate + 1%. Plan 2 has a higher threshold but charges RPI + up to 3%, so more interest accrues over time.
When is my Plan 1 written off?
Plan 1 loans are written off 25 years after the April you were first due to repay, or when you turn 65 (whichever is earlier, for pre-2006 loans).