Repaying More Than One Student Loan in the UK 2026 Guide
You finished two courses. Or you studied in Scotland, then moved to England for a postgrad. Or you graduated years ago, started repaying, and now you are living abroad, wondering if the Student Loans Company even knows where you are. Whatever brought you here, the confusion is the same: multiple loans, different plan types, and one payslip that does not tell you nearly enough.
Most people do not realise they can hold more than one student loan under completely different repayment rules at the same time. Your Plan 1 and Plan 2 loans do not cancel each other out. They each have their own threshold, their own interest rate, and their own write-off clock running in the background. If you have moved overseas, the whole system changes again because you no longer go through PAYE.
This guide covers everything. All plan combinations. How are repayments split between loans? What happens when you live abroad? And whether it is actually worth paying any of it back early. Use our student loan repayment calculator to run your own numbers alongside this guide.
Can You Have More Than One Student Loan?
Yes, and it is more common than people think. If you completed more than one course, studied across different academic years, or hold both an undergraduate and a postgraduate loan, you most likely have more than one loan sitting in your SLC account right now.
Each loan gets assigned a plan type based on when and where you studied. The plan type determines your repayment threshold, your interest rate, and how long before the remaining balance gets written off. Two loans from two different courses can sit on two completely different plans with no overlap.
Here is a quick reference for which plan applies to which borrower:
Plan Type | Who It Covers | Repayment Start |
Plan 1 | England/Wales before Sept 2012; Northern Ireland from 1998 | April after graduation |
Plan 2 | England/Wales Sept 2012 to July 2023 | April after graduation |
Plan 4 | Scotland (converted from Plan 1 in April 2021) | April after graduation |
Plan 5 | England from August 2023 onwards | April 2026 at earliest |
Postgraduate | Master’s and Doctoral loans, England and Wales | April after graduation |
If you are unsure which plan you are on, check your SLC account at gov.uk or look at the deduction codes on your payslip. Our student loan balance check page walks you through exactly what to look for.
How Multiple Loan Repayments Actually Work
One payment. That is what you see on your payslip, regardless of how many loans you hold. Every repayment loan student arrangement in the UK works this way through PAYE, whether you have one plan or three. Your employer takes one student loan deduction through PAYE, and the SLC splits that amount between your loans behind the scenes based on a specific allocation rule.
The rule works like this: repayments always go toward the loan with the lowest repayment threshold first. Once your income clears the higher threshold, too, repayments get split proportionally across both loans.
Important change from April 2026
If you start a new job and do not tell your employer which plan you are on, you will automatically default to Plan 5 treatment. Before 2026, the default was Plan 1. This matters because Plan 5 has a lower threshold (£25,000) than Plan 1 (£26,900), which means you could end up with incorrect deductions if you stay silent. Always confirm your plan type with HR or payroll on day one.
For people who file a self-assessment student loan repayment, the process is slightly different. HMRC calculates your annual repayment based on your total income for the year, not your monthly earnings. If you are both employed and self-employed, your combined income determines the repayment figure, and any PAYE deductions already made get credited against what you owe.
Our employee student loan repayment page covers payslip deduction codes in more detail if you want to cross-check what your employer is taking each month.
Repaying Your Student Loan From Abroad
If you have more than one UK student loan and you move abroad, the system changes completely. PAYE stops. Your employer no longer deducts anything. You deal with the SLC directly, and the thresholds you repay against are not the same ones that apply in the UK.
You Must Tell SLC Before You Leave
If you plan to live outside the UK for more than three months, you must notify the Student Loans Company before you go. This applies to everyone repaying student loans from overseas, whether you are moving temporarily for work or relocating permanently. Not after you land. Before.
If you do not, SLC can impose a fixed monthly repayment on your account. That fixed amount varies by country and plan type, and it is often set much higher than what you would pay under a proper income-based assessment. For some plan types, the fixed monthly charge can exceed £565 per month.
There is also a legal dimension to this. Under the terms of your student loan repayment agreement, you are required to keep the SLC updated on your circumstances. Ignoring it is not an option the SLC simply forgets about. They can, and do, take civil legal action for unpaid overseas debt.
How Overseas Repayment Thresholds Are Calculated
SLC does not just apply the UK threshold to your overseas salary. They use a World Bank Price Level Index to set a country-specific threshold for each loan plan. The idea is to reflect the actual cost of living in your new country, so the threshold feels broadly comparable to the UK one.
Lower cost-of-living countries get lower thresholds. If you move somewhere cheaper than the UK, you start repaying your student loan at a lower sterling-equivalent income than you would if you stayed home. Higher cost-of-living countries get higher thresholds. Living in Switzerland or Australia means you need to earn more in local currency before repayments kick in.
Returning to the UK After Living Abroad
When you come back, PAYE restarts automatically once you are on a UK payroll. Your employer will ask for your plan type or look at your P45. From April 2026 onwards, failing to confirm your plan type defaults you to Plan 5 treatment.
One thing people miss: if you were making overseas direct debit repayments and HMRC later asks you to complete a self assessment student loan repayment return, your overseas repayments may not be automatically credited. Contact SLC to transfer those records to HMRC before your return, otherwise you risk being asked to pay again for income already assessed. Our managing student loan arrears page covers what to do if there is a discrepancy.
Country | Approx. Plan 2 Threshold (GBP equivalent) |
UK | £29,385 |
Ireland | ~£17,680 |
Australia | ~£31,280 |
Switzerland | ~£38,250 |
South Africa | Lower than UK |
Canada | Broadly comparable to UK |
The repayment rate stays the same: 9% of income above threshold for Plans 1, 2, 4 and 5; 6% for the postgraduate loan. Only the threshold changes. And if you hold two loans, both plans get their own country-specific threshold. The lowest-threshold-first allocation rule still applies.
Repaying student loan from overseas means every penny goes direct to SLC, usually by direct debit or bank transfer in GBP. If you have a living overseas with student loan situation where your income fluctuates in local currency, it is worth keeping a small buffer above threshold just to absorb exchange rate movement.
2026/27 Repayment Thresholds for All Plan Types
These figures apply from 6 April 2026. These are the confirmed 2026/27 thresholds.
Plan | Annual Threshold | Monthly Threshold | Weekly Threshold | Repayment Rate |
Plan 1 | £26,900 | £2,241 | £517 | 9% |
Plan 2 | £29,385 | £2,448 | £565 | 9% |
Plan 4 | £33,795 | £2,816 | £649 | 9% |
Plan 5 | £25,000 | £2,083 | £480 | 9% |
Postgraduate | £21,000 | £1,750 | £403 | 6% |
A few things worth flagging about these numbers. The Plan 2 student loan repayment threshold has just risen to £29,385 for 2026/27. It will then stay frozen at that level until at least April 2030, per the 2025 Budget announcement. The Plan 5 threshold sits at £25,000 and stays there until April 2027, when it is due to increase in line with RPI inflation. The postgraduate threshold has been frozen at £21,000 since the loan launched and has not moved since.
You only pay on income above the threshold, not on your total salary. At £35,000 on Plan 2, you pay 9% of £5,615, not 9% of £35,000. That distinction matters a lot when you are budgeting.
Use our student loan repayment calculator to see exactly what comes off your payslip based on your salary and plan type.
How to Check Your Loans and Plan Types
Not sure what you actually have? Here is how to find out quickly:
- Log in to your SLC account to see your current balance, plan type, and repayment history
- Check your most recent payslip for the student loan deduction code (Plan 1 shows differently from Plan 2 or Plan 5)
- Look at your P60 at the end of each tax year, which shows total student loan deductions made by your employer
- Contact SLC directly if your account does not clearly show your plan type or if you think you have a loan not showing on your record
If you have moved and your contact details are out of date with SLC, update them before anything else. SLC sends annual statements, assessment forms, and write-off notices by post or email. Missed correspondence has a cost.
Use our student loan balance check guide to get an overview of your balance and repayment position across all your loans in one place.
Is It Worth Repaying Your Student Loan Early?
Honestly, this question has a different answer depending on which loan you are asking about.
Plan 2
borrowers, research consistently shows that 60 to 70% will not repay their full balance before write-off. If you will not clear the debt in 30 years anyway, every voluntary overpayment you make is money you paid toward something that would have been cancelled regardless.
Plan 1
borrowers are different. Thresholds are lower, interest rates track the base rate, balances are often smaller, and a larger proportion of Plan 1 borrowers do actually repay in full. If your balance is modest and you are a higher earner, early repayment on Plan 1 can make sense.
Plan 5
charges RPI only. No income-based interest premium. That makes the balance grow more slowly than Plan 2, and a higher percentage of Plan 5 borrowers are expected to repay in full over the 40-year term. Whether that makes early repayment worth it depends on how high your salary grows and what RPI does over the next four decades.
Postgraduate loan
the 6.2% interest rate is the highest of any current plan. If you have cleared high-interest consumer debt and built up savings, making extra repayments on the postgraduate loan can be a reasonable choice if your balance is not enormous and your salary is likely to grow.
Interest Rates Across All Plans in 2026
Interest builds on every loan whether you are repaying it or not. Even the loan you are not yet due to start repaying still accrues interest from the day the SLC paid it out.
Plan | Current Interest Rate | How It Is Set |
Plan 1 | 3.2% | Lower of RPI or Bank of England base rate plus 1% |
Plan 2 | 3.2% to 6.2% (variable) | RPI only at lower threshold, rising to RPI plus 3% at higher earnings |
Plan 4 | 3.2% | Lower of RPI or Bank of England base rate plus 1% |
Plan 5 | 3.2% | RPI only, no premium added at any income level |
Postgraduate | 6.2% | RPI plus 3% |
These rates apply from 1 September 2025 and are based on the March 2025 RPI figure of 3.2%.
Plan 2 is the one to watch. Once your income passes £29,385, interest rises above 3.2%. By the time you earn £52,885, the rate hits the full 6.2%. That means high-earning Plan 2 borrowers can find their balance growing even while they make regular repayments, especially in the early years when the balance is still large. Our student loan repayment interest rates page has a full year-by-year breakdown if you want to see how this plays out over time.
How Repayments Split Between Each Plan Combination
Thresholds: £26,900 (Plan 1) and £29,385 (Plan 2).
- Earn below £26,900: no repayments on either loan
- Earn between £26,900 and £29,385: Plan 1 repayments only
- Earn above £29,385: repayments split across both loans
The split works like this. Income between £26,900 and £29,385 generates repayments that go entirely toward Plan 1. Income above £29,385 generates repayments that go entirely toward Plan 2. Your monthly deduction is one combined figure.
Example: Nathan earns £30,000 a year. His annual repayment on Plan 1 covers income from £26,900 to £29,385, so £2,485 at 9% = £223.65. His Plan 2 repayment covers income from £29,385 to £30,000, so £615 at 9% = £55.35. Total annual repayment: £279. One payslip deduction, two loan allocations.
Thresholds: £29,385 (Plan 2) and £33,795 (Plan 4).
- Earn below £29,385: no repayments
- Earn between £29,385 and £33,795: Plan 2 repayments only
- Earn above £33,795: repayments split across both loans
Example: Dan earns £36,000 a year. Total annual repayment: (£36,000 minus £29,385) x 9% = £595.35.
Loan | Calculation | Annual Amount | Monthly Amount |
Plan 2 | (£33,795 minus £29,385) x 9% | £396.90 | £33.07 |
Plan 4 | (£36,000 minus £33,795) x 9% | £198.45 | £16.54 |
Total | £595.35 | £49.61 |
One deduction of £49.61 per month. SLC splits it between the two loans automatically.
Thresholds: £25,000 (Plan 5) and £29,385 (Plan 2). Note that Plan 5 has the lower threshold here, so it captures repayments first.
- Earn below £25,000: no repayments
- Earn between £25,000 and £29,385: Plan 5 repayments only
- Earn above £29,385: repayments split across both loans
Example: Alessia earns £32,000 a year. Total annual repayment: (£32,000 minus £25,000) x 9% = £630.
Loan | Calculation | Annual Amount | Monthly Amount |
Plan 5 | (£29,385 minus £25,000) x 9% | £394.65 | £32.89 |
Plan 2 | (£32,000 minus £29,385) x 9% | £235.35 | £19.61 |
Total | £630.00 | £52.50 |
Plan 5 repayments only started from April 2026. If you are in this combination, this is the first tax year your Plan 5 loan has actually been active for collection.
This combination runs differently from all the others. Your postgraduate and undergraduate loans do not follow the lowest-threshold-first rule in the same way. They run simultaneously once your income clears both thresholds.
- Earn below £21,000: no repayments on either loan
- Earn between £21,000 and £29,385: postgraduate repayments only at 6%
- Earn above £29,385: both loans are active at the same time
Example: Monthly income of £2,500 (£30,000 a year).
- Postgraduate: (£2,500 minus £1,750) x 6% = £45 per month
- Plan 2: (£2,500 minus £2,448) x 9% = £4.68 per month
- Combined monthly deduction: approximately £49.68
At higher salaries this adds up fast. At £40,000 a year you are paying 9% above £29,385 on Plan 2 and 6% above £21,000 on the postgraduate loan at the same time. The effective marginal rate on income above £29,385 is 15% when you add those together. See our postgraduate loan page for a full repayment breakdown specific to Master’s and Doctoral borrowers.
Write-Off Periods for Each Plan
This matters a lot when you hold two loans, because each one runs on its own write-off clock. They do not share a timeline.
Plan | Write-Off Period |
Plan 1 | 25 years after first repayment April, or age 65 (whichever comes first) |
Plan 2 | 30 years after the first repayment in April |
Plan 4 | 30 years after the first repayment in April, or age 65 |
Plan 5 | 40 years after the first repayment in April |
Postgraduate | 30 years after the first repayment in April |
So a borrower who holds Plan 2 and Plan 5 loans may find their Plan 2 balance written off in 30 years while their Plan 5 loan still has 10 years to run. They are separate contracts. The clock on each one starts from the April you first became liable to repay that specific loan, not the other one.
The full details of what happens at the point of cancellation are in our terms and conditions guide, including what to do if PAYE deductions continue after write-off (which does happen and can be reclaimed).
Frequently Asked Questions
Can I have more than one student loan at the same time?
Yes. It is common for borrowers who completed more than one course, or who hold both an undergraduate and postgraduate loan, to have multiple loans active at once.
Can you apply for more than one student loan while still repaying the first?
Yes, if you start a new qualifying course. Your eligibility for additional funding depends on the type of course and your previous study history. Prior study rules apply, so it is worth checking with Student Finance before you enrol.
What happens to my student loans if I move abroad?
PAYE deductions stop and you move to direct repayment via SLC. You must notify SLC if you plan to be outside the UK for more than three months. Country-specific thresholds apply based on local cost of living.
Do I repay both loans at the same time or one after the other?
It depends on your income. Repayments go toward the lower-threshold loan first. Once your income clears both thresholds, repayments split across both loans simultaneously.
Can the SLC take legal action if I do not repay from overseas?
Yes. The SLC has the right to take civil legal action to recover unpaid debt, whether you are in the UK or living abroad. This can include a court order requiring repayment of the full balance plus interest and legal costs in a single payment.
Is my student loan written off at the same time if I have two different plan types?
No. Each loan has its own write-off clock that starts from the April you first became liable to repay that specific loan. A Plan 2 loan and a Plan 5 loan taken years apart will reach their write-off dates at different times.
