STUDENT LOAN · 2026/27
Plan 4 repayments
Annual threshold£33,795
Repayment rate9%
At £40,000 salary£558/yr
Worked earnings examples
- £32,795 annual pay
- £0/year
- £33,795 annual pay
- £0/year
- £38,795 annual pay
- £450/year
- £40,000 annual pay
- £558/year
- £60,000 annual pay
- £2,358/year
How Plan 4 works through payroll
This plan commonly applies to borrowers on the Scottish repayment plan. The 9% rate applies to earnings above the relevant threshold, not the entire salary. At £40,000, the annualised illustration is £558, or roughly £47 per month.
Actual deductions use weekly or monthly payroll thresholds, so bonuses and uneven pay can make payslips differ from annual division. A postgraduate loan may be collected at the same time as an undergraduate plan. Interest affects the balance but not the payroll percentage.
Check repayment rules on GOV.UK. Use the main calculator for concurrent plans, pay frequency and salary changes.