Plan 1 essentials
- Repayment threshold for 2026-27: £26,900 per year (£2,242/month)
- Repayment rate: 9% of income above the threshold
- Interest rate: lower of RPI or Bank of England base rate + 1% — currently 3.2%
- Loan written off 25 years after the April you became liable to repay (or age 65 for pre-September 2006 loans)
- The protective dual-cap on interest means Plan 1 borrowers have the lowest rates of any plan
Who is on Plan 1? Plan 1 applies to anyone who started undergraduate study in England or Wales before 1 September 2012. It also applies to all student loans in Northern Ireland regardless of start date.
Not sure? Check your account at gov.uk.
Frequently asked questions
I'm in Northern Ireland — am I really on Plan 1?
Yes. Northern Ireland student loans, regardless of when you started, are administered as Plan 1. The threshold and rules above apply.
How much will I repay each month on £35k?
On a £35,000 salary you'd repay (£35,000 - £26,900) × 9% ÷ 12 = £60.75 per month. Use the calculator above for your exact figure.
Should I overpay my Plan 1 loan?
More often than for Plan 2 — Plan 1 has lower interest (3.2%) and a 25-year write-off, so high earners are more likely to repay in full. Run the numbers above with overpayment to see your specific case.