STUDENT & POSTGRADUATE LOAN THRESHOLD CHANGES - 2026 to 2027
- ASESA Solutions Ltd
- Jan 6
- 1 min read
HMRC has confirmed the student loan repayment thresholds and rates that will apply from 6 April 2026 for the 2026–27 tax year. These changes, announced by the Department for Education, affect employees across multiple student loan plan types and are important for payroll planning.
Student loan threshold changes from April 2026•
Plan 1: threshold increases from £26,065 to £26,900•
Plan 2: threshold increases from £28,470 to £29,385•
Plan 4: threshold increases from £32,745 to £33,795•
Plan 5: threshold set at £25,000 (no change)
From April 2026, employees will continue to repay 9% of earnings above the relevant threshold for Plans 1, 2, 4 and 5. While the increases for Plans 1, 2 and 4 are modest, they may slightly reduce monthly deductions for affected employees.
Postgraduate loan position
The postgraduate loan threshold remains unchanged at £21,000, and the repayment rate remains 6% of earnings above this level. There are currently no announced changes to postgraduate loan thresholds or rates for the 2026–27 tax year.
Employer considerations
Employers should review payroll systems and employee records to ensure the correct plan types and updated thresholds are applied from April 2026. Accurate payroll setup is essential to avoid incorrect deductions and potential employee queries.
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