2026–27 thresholds

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Plan 2 vs Plan 5: the key differences

Plan 2Plan 5
Yearly income threshold£29,385£25,000
Repayment rate9% above threshold9% above threshold
Interest (as shown on GOV.UK when checked)Variable: 4.1% at £29,385 or less, rising to 6% at £52,885 or more4.1%
Written off30 years after the April you were first due to repay40 years after the April you were first due to repay

Because Plan 5's threshold is £4,385 lower, anyone earning above £29,385 repays exactly £394.65 a year more on Plan 5 than they would on Plan 2 (9% of £4,385), which is about £32.89 a month.

Plan 5 also runs 10 years longer before any balance is written off.

Sources: GOV.UK — how much you repay, GOV.UK — write-off.

Last checked: 19 October 2026. Estimates only, not tax advice.

FAQ

Is Plan 5 more expensive than Plan 2?

At the same salary above £29,385, Plan 5 takes £394.65 a year more, and repayments can run for 40 years instead of 30.

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