LLE vs Plan 5: Student Finance Changes in 2027
LLE determines which eligible study may be funded from January 2027. Plan 5 determines how the resulting student loans are repaid.
Short answer
LLE and Plan 5 are not alternatives. The Lifelong Learning Entitlement is England’s funding system for eligible courses and modules starting on or after 1 January 2027. Plan 5 is the repayment framework used for LLE Tuition Fee Loans and Maintenance Loans.
Put simply, LLE answers what may be funded. Plan 5 answers how the borrowing is repaid.
Key takeaways
- LLE applications are due to open from September 2026 for eligible study starting from January 2027.
- A new eligible learner may have up to £39,160 in Tuition Fee Loan entitlement at 2026–27 rates.
- The £39,160 balance is repayable and can be reduced by previous publicly funded tuition support.
- LLE borrowing follows Plan 5, with repayments normally equal to 9% of gross earnings above £25,000.
- The published Plan 5 interest rate is 3.2% until 31 August 2026.
- The official rate from September 2026 had not yet been announced at this fact-check date.
- A course starting before January 2027 does not automatically transfer to LLE.
LLE and Plan 5 compared
| Question | LLE | Plan 5 |
|---|---|---|
| What is it? | A student-finance funding system | A student-loan repayment plan |
| What does it decide? | Whether eligible courses, qualifications or modules may receive tuition and maintenance support | When repayments begin, the deduction rate, interest approach and write-off period |
| Main start boundary | Eligible study starting on or after 1 January 2027 | Used for relevant England borrowing, including LLE loans |
| Maximum or threshold | Up to £39,160 Tuition Fee Loan entitlement for a new eligible learner at 2026–27 rates | £25,000 annual repayment threshold for the 2026–27 tax year |
| Is it repayable? | Yes, where Tuition Fee or Maintenance Loans are awarded | Plan 5 defines the repayment calculation |
For the wider eligibility, course, module and previous-study rules, read our complete Lifelong Learning Entitlement guide.
How much LLE funding may be available?
The published maximum for a new eligible learner is £39,160 at 2026–27 rates. This is four times the standard maximum full-time tuition fee of £9,790.
The balance is monetary. Government guidance uses around 480 credits as an illustration based on four typical 120-credit years, but learners do not receive a separate guaranteed 480-credit purse.
Previous government-funded tuition support will usually reduce the remaining balance. A fully publicly funded three-year degree can therefore leave the equivalent of one year at the current maximum rate, subject to the official calculation.
Maintenance Loans under LLE
Maintenance support is separate from the Tuition Fee Loan balance. Current guidance says a learner normally needs an eligible course, at least 30 credits, in-person attendance and enough remaining tuition entitlement for the course year.
The displayed maximum is up to £15,415 for a 120-credit course year lasting up to 30 weeks. The actual award can depend on household income, living arrangements, location, credits and study weeks.
If less than £1,587.50 remains in the tuition entitlement, maintenance may still be possible where the remaining amount is used towards the same course, although the learner may need to pay any tuition shortfall personally.
A fully online course normally does not qualify for an LLE Maintenance Loan unless the official disability or long-term illness exception applies.
How Plan 5 repayment works
LLE loans use Plan 5. Repayment is based on income, not on the amount borrowed or the outstanding balance.
| Plan 5 feature | Current position |
|---|---|
| Annual threshold | £25,000 |
| Monthly threshold | £2,083.33 |
| Weekly threshold | £480.76 |
| Deduction rate | 9% of gross earnings above the relevant pay-period threshold |
| Current interest rate | 3.2% until 31 August 2026 |
| Write-off | Normally 40 years after the April when repayment first became due |
Plan 5 interest is normally reset each September using the Retail Price Index from the previous March. March 2026 RPI was 4.1%, but the official Plan 5 rate from September 2026 had not yet been formally announced at this fact-check date. Do not treat 4.1% as final until the annual DfE or Student Loans Company announcement is published.
The interest rate affects the balance. It does not alter the standard 9% payroll deduction calculation.
Two simple examples
Earnings below the threshold
If gross annual earnings are £24,000 and the pay-period pattern does not cross the relevant weekly or monthly threshold, the standard Plan 5 repayment is £0.
Earnings of £30,000
The annual difference above £25,000 is £5,000. Nine per cent of £5,000 is £450, or about £37.50 a month when earnings are spread evenly. Payroll uses actual pay periods, so bonuses and irregular income can change deductions.
These examples explain the calculation only. They do not predict a person’s tax, pension, National Insurance or other deductions.
What to check before choosing a course
- Confirm the exact course or module start date.
- Check that the provider and provision are eligible for LLE.
- Confirm the fee and number of credits for the course year.
- Check how previous public tuition support affects the remaining entitlement.
- Check nationality and residence eligibility using the exact route and evidence.
- Assess Maintenance Loan eligibility separately.
- Check the live Plan 5 threshold and interest rate before financial planning.
- Apply to the provider and Student Finance England as separate processes.
Frequently asked questions
Is the Lifelong Learning Entitlement the same as Plan 5?
No. LLE is the funding system for eligible courses and modules starting from January 2027. Plan 5 is the repayment framework used for the resulting loans.
When does LLE start?
LLE applies to eligible courses and modules starting on or after 1 January 2027. Official guidance says applications will open from September 2026.
Is the £39,160 LLE entitlement guaranteed?
No. It is the standard maximum Tuition Fee Loan entitlement for a new eligible learner at 2026–27 rates. Previous public tuition support, course fees and personal eligibility can reduce the available amount.
Will an existing course switch to LLE in January 2027?
No. A course that starts before 1 January 2027 remains under the student-finance system that applied when it began.
How much do you repay under Plan 5?
Repayments are normally 9% of gross earnings above the relevant £25,000 annual threshold. Payroll applies weekly or monthly thresholds to each pay period.
What is the Plan 5 interest rate?
The published Plan 5 rate is 3.2% until 31 August 2026. The rate is normally reset each September using the previous March RPI, but the official rate from September 2026 had not been announced at this fact-check date.
Can LLE students receive a Maintenance Loan?
Possibly. Maintenance support is separate from the tuition entitlement and normally depends on an eligible course, in-person attendance, credits, remaining entitlement, household income and living circumstances.
Comparing courses that may use LLE funding?
Ready Study Global can help you compare courses and prepare a university application. Student Finance England decides funding eligibility and the provider decides admission.
Primary sources
Ready Study Global does not charge students a consultancy fee for university application guidance. University tuition, deposits and other provider or third-party costs remain payable.
Important: This article provides general information for England only. Ready Study Global does not provide legal, immigration or regulated financial advice. Admissions and Student Finance England decisions are made by the relevant institutions and public authorities. Funding rules, thresholds and interest rates can change, so check the live official guidance before acting.