🇬🇧 2026/27
STUDENT LOAN GUIDE · 2026/27

Repaying two student loans at once

Two undergraduate plans share one 9% deduction; a Postgraduate Loan adds 6% on top.

ESTIMATE

Illustrative estimates for the 2026/27 tax year (6 April 2026 – 5 April 2027) as of 3 November 2026 — not financial advice. Thresholds from GOV.UK; interest rates for 1 September 2026 – 31 August 2027 from the Student Loans Company. Your payslip may differ by a pound or two because payroll rounds each pay period.

If you have two undergraduate plans, you still make a single 9% repayment — calculated from the lower of the two thresholds and shared between the loans. If one of your loans is a Postgraduate Loan, it is different: you pay 6% above £21,000 as well as 9% above your undergraduate threshold.

On £40,000 with Plan 1 and Plan 2: 9% above £26,900 = £1,179 a year, of which £224 goes to Plan 1 (the slice between £26,900 and £29,385) and £955 to Plan 2Nothing repaid9% → Plan 2: £9559% → Plan 1: £224£0£26,900£29,385£40,000
How one 9% deduction is shared between Plan 1 and Plan 2 on a £40,000 salary.

Who ends up with two plans?

The most common combinations are an undergraduate loan plus a Postgraduate Loan for a master’s or PhD, and Plan 1 plus Plan 2 for people who studied a first degree before September 2012 and returned for a second course later — often a nursing, teaching or medical degree. Plan 2 plus Plan 5 is possible for people who start a new undergraduate course in England after August 2023. Each loan keeps its own balance, interest rate and write-off date.

Two undergraduate plans: one deduction, shared

According to GOV.UK, if you have more than one undergraduate plan you repay 9% of income over the lowest threshold, and only one deduction is taken each pay period. The amount that goes to the plan with the lowest threshold is capped at 9% of the gap between the two thresholds; anything above that goes to the other plan. In practice, for Plan 1 + Plan 2:

SalaryTotal repaid / yearTo Plan 1To Plan 2Plan 2 alone would be
£28,000£99£99£0£0
£32,000£459£224£235£235
£40,000£1,179£224£955£955
£50,000£2,079£224£1,855£1,855
£70,000£3,879£224£3,655£3,655

Notice that the Plan 2 share is exactly what a Plan 2-only graduate would pay. Having Plan 1 as well adds at most £224 a year — 9% of the £2,485 gap between the thresholds. Once your Plan 1 loan is repaid or written off (25 years after you were first due, or at 65 for pre-2006 loans), the deduction falls back to Plan 2 only.

See your full payslip

Add your student loan plan to the UK take-home pay calculator to see income tax, National Insurance, pension and loan repayments together for 2026/27.

Open the take-home pay calculator →

Undergraduate plus Postgraduate Loan: two deductions

A Postgraduate Loan is never shared. You pay 6% of income above £21,000 for the Postgraduate Loan and, separately, 9% of income above your undergraduate threshold. On £40,000 with Plan 2, that is £94 plus £79 = £173 a month. With Plan 5 instead, it is £206. See Postgraduate Loan repayments for a full table.

Three loans?

It is possible to have Plan 1, Plan 2 and a Postgraduate Loan. The two undergraduate plans share a 9% deduction above the Plan 1 threshold as above, and the Postgraduate Loan adds 6% above £21,000. On £50,000 that is £173 plus £144 a month.

Checking your employer has the right codes

Your employer can operate several student loan plan types for you at once, but only if HMRC or you have told them. If your payslip shows only one plan when you have two undergraduate loans, the total deduction may be lower than it should be — it will be corrected later, which can mean a bigger balance or a bill. If it shows a Postgraduate Loan you don’t have, tell your employer and the Student Loans Company straight away and ask for a refund.

Which loan to overpay, if any

If you decide to make voluntary payments, you can choose which loan they go to. The usual logic is to target the loan most likely to be repaid in full and charging the highest interest — often a Postgraduate Loan at 6% in 2026/27 — rather than a Plan 2 balance that may be written off. Read should I overpay my student loan? first.

FAQ

How do I repay Plan 1 and Plan 2 at the same time?

You make one 9% repayment on income above the Plan 1 threshold (£26,900 in 2026/27). Up to 9% of the gap between the Plan 1 and Plan 2 thresholds goes to Plan 1, and the rest goes to Plan 2.

Do I pay twice if I have two student loans?

Not for two undergraduate plans — they share one deduction. A Postgraduate Loan is an exception: it adds a separate 6% deduction on income above £21,000.

How much do I repay on £40,000 with Plan 2 and a Postgraduate Loan?

About £173 a month in 2026/27: £79 for Plan 2 and £94 for the Postgraduate Loan.

Does having Plan 1 and Plan 2 cost more than Plan 2 alone?

Slightly. The extra is at most 9% of the gap between the thresholds — £224 a year in 2026/27 — which goes to the Plan 1 loan.

Can I choose which loan my overpayment goes to?

Yes. When you make a voluntary repayment through the Student Loans Company you can direct it to a specific loan.

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Sources

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