English students who started undergraduate study before August 2023 are on Plan 2 loans. Those who started from August 2023 onwards are on Plan 5. The distinction matters because the repayment threshold, write-off period, and long-run cost differ significantly between the two plans.
The repayment threshold
Plan 2 repayments begin once annual income exceeds £28,470 (2025/26 threshold). Plan 5 repayments begin at the lower threshold of £25,000. For a graduate earning £30,000, that means:
- Plan 2: 9% of (£30,000 - £28,470) = £138 per year (£11.50/month).
- Plan 5: 9% of (£30,000 - £25,000) = £450 per year (£37.50/month).
The difference is modest at that salary level but compounds over a career.
The write-off period
Plan 2 loans are written off after 30 years. Plan 5 loans are written off after 40 years. This is the more significant difference for most graduates. High earners who would have paid off their Plan 2 loan in full may still have a balance remaining at 30 years on Plan 5 - but that balance is then cancelled automatically.
Tip: For median earners, neither Plan 2 nor Plan 5 is likely to be fully repaid before write-off. The loan functions more like a time-limited income-contingent contribution to the cost of your education than a debt in the conventional sense.
Interest rates
Both plans charge interest linked to RPI inflation, but the ceiling differs. Plan 2 interest was capped at RPI plus 3% for high earners. Plan 5 charges simple RPI with no premium for higher earners. This narrows the effective interest rate for higher-earning Plan 5 borrowers compared to their Plan 2 counterparts in high-inflation years.
What this means when comparing costs
When CourseMap shows course fees, remember the actual cash cost to any individual depends entirely on lifetime earnings. A course leading to consistently high earnings will cost more in total repayments than a course leading to median earnings, but both borrowers pay only 9% of income above the threshold.
The 2025/26 tuition fee cap
For the 2025/26 academic year, the permitted tuition fee cap for Plan 5 borrowers in England rose to £9,535 per year, up from £9,250. Universities can charge up to this new cap. Check each course page for the exact fee charged.