Independent briefing · 5 minute read
Plan 4 vs Plan 5 student loans
Scotland has the highest repayment threshold of any plan, England the lowest. What that gap is worth.
Editorial record
- Last reviewed
- 27 July 2026
- Purpose
- General information, independently produced
01
Why this comparison matters
Scottish and English graduates face very different systems. Plan 4 carries by far the highest repayment threshold of any undergraduate plan, so Scottish-funded graduates on ordinary salaries often repay nothing at all for years. Plan 5 starts at the lowest threshold of any plan and runs for forty years.
02
The rules side by side
| Plan 4 | Plan 5 | |
|---|---|---|
| Repayment threshold | £33,795 a year | £25,000 a year |
| Repayment rate above the threshold | 9% | 9% |
| Interest | The lower of RPI or Bank Rate plus 1% | RPI only, with no premium above inflation |
| Written off after | 30 years | 40 years |
| Who it applies to | Funded by SAAS (Scotland) | Started uni September 2023 onwards |
Thresholds and rates are the verified 2026/27 figures used throughout this site. Every one is listed with its official source on the sources page.
03
What each plan costs on a £35,000 balance
These figures are produced by the same engine that powers the calculator, run for both plans at identical salaries and an identical starting balance, so the only thing that differs is the plan itself.
| Salary | Plan 4 monthly | Plan 4 outcome | Plan 5 monthly | Plan 5 outcome |
|---|---|---|---|---|
| £25,000 | £0 | £90,566 written off | £0 | £124,668 written off |
| £30,000 | £0 | £90,566 written off | £38 | £88,640 written off |
| £35,000 | £9 | £85,186 written off | £75 | £52,613 written off |
| £45,000 | £84 | £40,534 written off | £150 | Clears in 30 years and 6 months |
| £60,000 | £197 | Clears in 20 years and 2 months | £263 | Clears in 13 years and 9 months |
Assumptions: a £35,000 starting balance, a salary held constant so that the plan rules are the only variable, and interest held at the verified snapshot. Real salaries rise, which shortens the picture for higher earners. Use the calculator to model your own balance, salary and pay growth.
04
The bottom line
The threshold gap dominates everything else. A Scottish-funded graduate and an English graduate on the same salary can be paying wildly different amounts, or in some cases one paying nothing while the other pays every month.
Neither plan is something you choose. Your plan is set by where and when you were funded, so the practical value of knowing the difference is understanding whether your balance is likely to be cleared or cancelled, which is what determines whether paying extra makes any sense at all.
05
Which plan am I on?
Plan 4: Students funded by SAAS in Scotland, covering undergraduate and postgraduate borrowing.
Plan 5: English students who started an undergraduate course from August 2023 onwards.
Your funding body decides your plan, not where you now live or work. If you are not sure, your online repayment account with the Student Loans Company states it, and GOV.UK explains how plans are assigned.
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This is general information, not financial advice. Check GOV.UK for the official rules that apply to your circumstances.