Plan 4 Student Loan (Scotland): 2025-26 & 2026-27
HMRC income-contingent repayments · 9% above £33,795 (2026-27)
Quick answer
£558/year on £40,000 (2026-27)
Threshold: £32,745 (2025-26) → £33,795 (2026-27) · Rate: 9%
Who this plan is for
Scottish students who took an undergraduate loan with the Student Awards Agency Scotland (SAAS) — any start year since 1998.
- Scottish-domiciled undergraduates funded by SAAS (any start year)
- Previously-called "Scottish Plan 1" loans — rebranded to Plan 4 from 6 April 2021
- EU students who studied in Scotland
Plan 4 repayments by salary
All figures computed live from HMRC-published thresholds. 9% of income above £33,795 (2026-27).
| Gross salary | 2025-26 annual | 2026-27 annual | 2026-27 monthly |
|---|---|---|---|
| £30,000 | £0 | £0 | £0 |
| £32,745 | £0 | £0 | £0 |
| £33,795 | £95 | £0 | £0 |
| £40,000 | £653 | £558 | £47 |
| £50,000 | £1,553 | £1,458 | £122 |
| £75,000 | £3,803 | £3,708 | £309 |
| £100,000 | £6,053 | £5,958 | £497 |
Interest rate
Plan 4 interest is the lower of Bank of England base rate + 1% or RPI — same capped formula as Plan 1.
Current rates change each September (RPI reset). See the GOV.UK student loan repayment thresholds and interest rates page for the latest.
Writeoff
Plan 4 loans are written off 30 years after the April you were first due to repay, or when you turn 65 (whichever comes first for pre-2007 loans).
Use the full calculator
Want to combine Plan 4 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 4 threshold for 2026-27?
£33,795 per year (£2,816/month, £650/week). You only repay 9% on the portion of your gross income that exceeds this figure. The 2025-26 threshold was £32,745, and HMRC applies the new threshold from 6 April 2026.
How much do I pay on a £40,000 salary under Plan 4?
At £40,000 for 2026-27, you repay £558 per year (£47 per month). The calculation is 9% × (£40,000 − £33,795 threshold) = £558. Repayments stop automatically if your income drops below the threshold.
Who qualifies for the Plan 4?
Scottish students who took an undergraduate loan with the Student Awards Agency Scotland (SAAS) — any start year since 1998.
I studied in Scotland but now live in England — which plan?
Still Plan 4. The plan is tied to where you took the loan out (SAAS funding), not where you currently work. Tell HMRC and your employer you are on Plan 4 so the correct threshold is used.
Is Plan 4 the same as Plan 1?
They share the interest formula and repayment rate, but Plan 4 has a higher threshold (Scotland raised it meaningfully from 2021). Always check the year-specific thresholds, because Plan 4 is uprated separately from Plan 1.
I have a Plan 4 loan and now a postgraduate loan. How does that work?
You repay both in parallel. Plan 4 at 9% above its threshold, Postgraduate at 6% above £21,000 — these stack. Someone earning £40,000 on both plans pays roughly 9% × (£40k − Plan 4 threshold) + 6% × (£40k − £21k) = combined repayment.
When is my Plan 4 written off?
Plan 4 loans are written off 30 years after the April you were first due to repay, or when you turn 65 (whichever comes first for pre-2007 loans).