Student Loan After Tax in Wales 2025-26
Wales uses the same income tax and student loan repayment rules as England. Welsh students typically use Plans 1, 2, or 5 depending on when they started their course.
Student loan plans for Wales
Plan 1 — all salary levels (Wales)
Plan 2 — all salary levels (Wales)
Plan 5 — all salary levels (Wales)
Postgraduate — all salary levels (Wales)
Student loans for Welsh students
Most Welsh students who started higher education from September 2012 onward repay under Plan 2, with a repayment threshold of £27,295 (2025-26). Students starting from August 2023 use the new Plan 5, which has a lower threshold of £25,000 but a longer repayment term of 40 years. Welsh students studying in Wales may receive different maintenance support through Student Finance Wales — the Welsh Government provides higher maintenance grants than England — but the repayment plan type and thresholds are identical.
Repayments are 9% of income above the threshold, deducted through PAYE alongside income tax and National Insurance. Unlike income tax, student loan repayments are not devolved — Welsh taxpayers follow the same national repayment rules as English students on equivalent plans. Interest on Plan 2 loans is linked to RPI plus up to 3% while studying and RPI to RPI+3% thereafter depending on income.