Plan 2 vs Plan 5 student loans: which plan are you on?
Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.
Quick answer: Plan 2 loans (started university 2012–2023) charge 9% above £29,385 from April 2026 and are written off after 30 years. Plan 5 loans (started 2023 onwards) charge 9% above £25,000, are written off after 40 years, but have lower interest rates.
England now has two main student loan plans for undergraduates. Which plan you are on depends on when you started university. The repayment threshold, interest rate, and write-off period all differ. Knowing your plan helps you understand how much you will actually repay.
Before you start: Skip this page if you need a personal recommendation or a live quote. This is general UK information — confirm today's figures with the official source linked below.
Content updated: 2 min read
Plan 2 loans (2012–2023 starters)
You repay 9% of income above £29,385 per year (2026/27 threshold — it changes each April). Interest is RPI plus up to 3% while studying and between RPI and RPI plus 3% after graduation depending on income.
The loan is written off 30 years after the April after you graduate. Most Plan 2 borrowers repay for the full 30 years without clearing the balance.
Plan 5 loans (2023 onwards starters)
You repay 9% of income above £25,000 per year. Interest tracks RPI only — no income-based interest surcharge.
The loan is written off 40 years after the April you were first due to repay. The lower threshold means more borrowers make repayments, but the lower interest rate slows balance growth.
Which plan is 'better'?
Plan 5 has a lower repayment threshold but lower interest, and a longer write-off period. Low earners pay more under Plan 5; high earners may pay less due to lower interest.
Whether you repay in full depends on your lifetime earnings: the Department for Education expects 55% of full-time Plan 5 starters in 2025/26 to repay in full, including the top 30% of earners. Focus on career earnings rather than overpaying the loan — see will I pay off my student loan?.
Common questions
Can I switch from Plan 2 to Plan 5?
No. Your plan is fixed based on when you started university. You cannot switch between plans.
Do Plan 5 loans have lower interest?
Yes. Plan 5 interest tracks RPI only. Plan 2 adds up to 3% on top of RPI for higher earners, meaning Plan 2 balances grow faster.
Should I overpay my student loan?
If you are unlikely to repay in full before write-off, overpaying mostly reduces the amount that would be written off anyway. If you expect to clear the balance, overpaying saves interest.