The Resident Doctor's Guide to Student Loans

Most doctors will have used a student loan to study medicine for 5 or 6 years. In this article, we will discuss the terms of your loan. (Resident doctors were known as junior doctors until the title changed in September 2024.)

Student loans are divided into two parts:

  • Tuition fee loan: Paid directly to the university
  • Maintenance loan: Paid to you for living costs

Student Loan Plans

Plan 1 (Started before September 2012)

  • Repayment threshold: £26,900 (2026-27)
  • Repayment rate: 9% above threshold
  • Interest rate: 3.2% (as of April 2026)
  • Written off: After 25 years

Plan 2 (Started September 2012 to July 2023)

  • Repayment threshold: £29,385 (2026-27)
  • Repayment rate: 9% above threshold
  • Interest rate: Variable and income-linked, currently 3.2% to 6.2%
  • Written off: After 30 years

Plan 5 (Started September 2023 or later)

  • Repayment threshold: £25,000 (2026-27)
  • Repayment rate: 9% above threshold
  • Interest rate: 3.2% (as of April 2026)
  • Written off: After 40 years

Plan 4 (Studied in Scotland)

  • Repayment threshold: £33,795 (2026-27)
  • Repayment rate: 9% above threshold
  • Interest rate: 3.2% (as of April 2026)
  • Written off: After 30 years

Which plan am I on? Most resident doctors are on Plan 2 (English students who started university between 2012 and 2023). Anyone who started an English course from September 2023 is on Plan 5. If you started before September 2012 you are on Plan 1. The plan is set by when and where you studied, not by your course.

If you took a Postgraduate Master's or Doctoral loan, that is repaid separately at 6% of income above £21,000, alongside any Plan 1, 2, 4, or 5 loan.

How Repayments Work

You pay 9% of income above the threshold. Repayments are made through HMRC and deducted from your salary automatically.

Interest Rates

  • Interest is set each academic year (from 1 September) rather than each tax year, so the rate can change mid-year
  • Plan 2 interest is income-linked: RPI while you earn under the threshold, rising to RPI plus up to 3% at higher incomes
  • Plan 1, 4, and 5 interest is currently 3.2%, the lower of RPI or the Bank of England base rate plus 1%

Repayment Strategy

For some, "running down the clock" on loan repayment might be financially strategic, especially for Plan 2 loans.

Consider:

  • Your total debt amount
  • Expected career earnings trajectory
  • Interest rates vs investment returns
  • Time to loan write-off

Note: Student loan repayment strategy is complex and personal. Consider speaking to a financial advisor for advice specific to your situation.

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