Student Loan Repayments on NHS Pay: 2026/27 Guide

Last updated: 28 September 2026 · Figures verified against the NHS Employers 2026/27 pay circular.

By the NHS Bands Pay editorial team

Which plan am I on?

Your plan depends on when and where you studied, not where you work now:

Most early-career NHS staff - nurses, midwives, AHPs who trained from 2012 - are on Plan 2. Staff who trained more recently may be on Plan 5, which has a lower threshold (£25,000) and a 40-year write-off. If you studied in Scotland, you are on Plan 4 even if you now work in England. Check your plan on your Student Loans Company statement if you are unsure - the wrong plan on your payroll record means wrong deductions.

2026/27 thresholds and rates

These are the official 2026/27 figures from GOV.UK:

Source: GOV.UK - Repaying your student loan: how much you repay.

The formula is always the same: (pay − threshold) × rate, applied only to the amount above the threshold. Earn below it and you pay nothing that month - your loan balance is irrelevant to the deduction.

How payroll calculates it

• Per pay period, not per year. NHS payroll compares each month's gross pay against the monthly threshold. This is the single most misunderstood point: a month with heavy overtime or a pay award back payment can push you over the threshold and trigger a deduction, even if your annual salary is below it. Bank nurses paid weekly are assessed against the weekly threshold instead - see are NHS nurses paid weekly or monthly - and the pay dates determine which pay period each payment falls into.
• Refund safety valve. If your annual income ends up below the yearly threshold, you can ask the Student Loans Company for a refund of that year's repayments at the end of the tax year.
• Per job, not combined. If you hold two NHS jobs (for example a substantive post plus bank work paid through a separate payroll), each payroll assesses its own pay against the threshold - they are not combined.
• Gross pay counts - before tax, but including overtime, enhancements and bonuses. The deduction then comes out of your net pay: student loan is not a tax and does not reduce your taxable income.
• Payroll needs your plan. Your employer gets a start notice from HMRC, but telling payroll your correct plan when you join avoids months of wrong deductions.

Worked examples by NHS band

Using 2026/27 England basic salaries (before enhancements, which would increase repayments):

Check the Band 2 row: £25,272 is only just above the Plan 5 threshold of £25,000, so the annual repayment is under £25 - about £2 a month. And note the Band 5 mid row twice: adding a Postgraduate loan nearly triples the deduction (£39 → £107 a month), because the PG threshold is far lower. Staff on Plan 4 in Scotland enjoy the highest threshold (£33,795), so a Band 5 mid repays nothing on the undergraduate loan there.

Quick repayment check

Try a rough estimate with your own figures - or use our full NHS student loan calculator for postgraduate combinations, per-plan monthly breakdowns and part-time scenarios:

Two loans at once

• Undergraduate + Postgraduate: you repay both simultaneously - 9% above the undergraduate threshold and 6% above the £21,000 postgraduate threshold. There is no cap combining them; the table above shows how large the combined deduction can get at senior bands.
• Two undergraduate plans (for example Plan 1 and Plan 2): you pay a single 9% repayment calculated over the lowest threshold. The repayment is then split between the loans, with a cap on how much goes to the lower-threshold loan.

Interest and write-off

Interest is added to your balance whether or not you are repaying. Current rates (per GOV.UK): 4.1% for Plan 1, Plan 4 and Plan 5; 6% for Postgraduate loans; and a variable rate for Plan 2 - 4.1% on incomes up to £29,385, rising to 6% at £52,885+. Because most NHS salaries sit well under the write-off horizon, many staff will never repay the full balance:

• Plan 1: generally written off 25 years after you became eligible to repay (age 65 for older loans).
• Plan 2: written off 30 years after entering repayment.
• Plan 5: written off 40 years after entering repayment.
• Postgraduate: written off 30 years after entering repayment.

Source: GOV.UK - Repaying your student loan.

A useful rule of thumb: your repayment amount is a function of income only - the size of the loan never changes the monthly deduction. Overpaying voluntarily is therefore rarely sensible unless you are on track to clear the balance before write-off, which at most NHS salaries on Plan 2 or 5 is unlikely. That is a personal financial decision, though - not something this guide can make for you.

Common mistakes

• Wrong plan on the payroll record - especially Plan 1 vs Plan 2 for 2012 starters, or Plan 4 for staff who trained in Scotland. Check your first payslip in a new job.
• Assuming no repayment because the annual salary is below the threshold - the monthly test means overtime-heavy months still deduct. Keep the refund option in mind.
• Thinking it reduces taxable income - it does not; it is deducted after tax and NICs.
• Ignoring the postgraduate loan - the extra 6% is the biggest surprise on senior-band payslips.
• Paying it off early by default - at typical NHS salaries and Plan 2/5 write-off horizons, voluntary overpayments often just hand money to the Treasury early.

Student loan sits alongside your other payslip deductions - income tax, National Insurance, NHS pension contributions - in determining your take-home pay. Our band guides show the full picture; start with Band 5 pay or the pay bands overview.

Frequently asked questions

How much student loan do NHS staff repay each month?

9% of your monthly pay above your plan's threshold: £2,241/month for Plan 1, £2,448 for Plan 2, £2,816 for Plan 4, £2,083 for Plan 5, or 6% above £1,750/month for Postgraduate loans. A Band 5 on Plan 2 repays around £39–£72 a month.

Which student loan plan am I on?

England and Wales: Plan 1 if you started before 1 September 2012, Plan 2 if you started on or after that date, Plan 5 if you started on or after 1 August 2023. Scotland: Plan 4. Northern Ireland: Plan 1. Postgraduate loans are a separate plan on top.

Do student loan repayments come out before or after tax?

Repayments are calculated on gross pay before tax and other deductions, but the deduction itself comes out of your pay after income tax and National Insurance are taken - it is not a tax, and it does not reduce your taxable income.

Can I be repaying two student loan plans at once?

Yes. If you have an undergraduate loan and a postgraduate loan, you repay 9% above the undergraduate threshold and 6% above the £21,000 postgraduate threshold at the same time. If you have two undergraduate plan types, you pay a single 9% repayment over the lowest threshold.

What happens if overtime pushes me over the threshold in one month?

Payroll deducts based on that month's pay, so a bonus or overtime spike can trigger a repayment even if your annual salary is below the threshold. You can ask the Student Loans Company for a refund at the end of the tax year if your annual income was below the yearly threshold.

Does my student loan balance affect my monthly repayment?

No. Your repayment is purely a percentage of income above the threshold. The amount you borrowed - and the interest added - has no effect on how much is deducted each month.

When is my student loan written off?

It depends on the plan: Plan 1 loans are generally written off 25 years after you became eligible to repay (or at age 65 for older loans), Plan 2 after 30 years, Plan 5 after 40 years, and Postgraduate loans after 30 years. Check GOV.UK for your specific loan.

Sources and independence

Source: GOV.UK - Repaying your student loan: how much you repay (thresholds, rates, interest, multiple plans).

NHS salary figures: NHS Employers Agenda for Change pay circular 2026/27.

NHS Bands Pay is an independent information website. It is not affiliated with, endorsed by, or acting on behalf of the National Health Service, the Student Loans Company or HMRC. Student loan thresholds and rates change each tax year - always check GOV.UK for the current figures.