Your loan details
£
£
£
Monthly repayment
£0
based on your salary and plan
—Years to clear
—Total repaid
—Total interest
—Write-off year
For guidance only — not financial, tax or legal advice. Verify with a qualified professional.
Student loan repayment — common questions
Do I have to repay my student loan if I earn below the threshold?
No. Repayments are only taken when your income exceeds the threshold for your plan. For Plan 2 that's £27,295, Plan 5 is £25,000, Plan 1 is £24,990, Plan 4 is £31,395, and Postgraduate is £21,000. If you earn below your threshold in any given year, nothing is deducted — and any repayments already made are not refunded for that year.
What happens to my student loan if I never fully repay it?
UK student loans are written off after a set period regardless of the outstanding balance. Plan 1 loans are written off at age 65 or 25 years after the April you were first due to repay (whichever comes first). Plan 2 and Plan 4 are written off 30 years after you entered repayment. Plan 5 is also written off after 40 years. Postgraduate loans are written off 30 years after entering repayment. Many borrowers — especially on Plan 2 — will never clear their loan in full.
How is interest calculated on my student loan?
Interest is calculated differently by plan. Plan 1, Plan 4 and Plan 5 charge interest at the rate of RPI (Retail Price Index inflation), currently around 3.5%. Plan 2 is more complex: while studying and for higher earners, interest is RPI plus 3%, but for incomes between £27,295 and £49,130 the rate tapers between RPI and RPI+3%. Postgraduate loans also charge RPI+3% (uncapped). Importantly, interest on student loans does not compound in the same damaging way as consumer debt — it simply accrues on the outstanding balance.
Is it worth making voluntary overpayments on my student loan?
For most borrowers on Plan 2, voluntary overpayments are rarely worth it. If you are unlikely to repay the full balance within 30 years, any extra payments reduce a debt that would have been written off anyway — so you pay more overall. Overpayments make more sense if you are a higher earner on Plan 1 or Plan 5 who will realistically clear the balance, or if interest rates are above what you could earn on savings. Always model both scenarios before overpaying.
Can I be on more than one student loan plan?
Yes. If you took out an undergraduate loan before September 2012 and then a postgraduate loan more recently, you could have both Plan 1 and a Postgraduate loan running simultaneously. Repayments for each are calculated separately and deducted independently by your employer via PAYE. You will repay 9% above the Plan 1 threshold plus 6% above the Postgraduate threshold at the same time if both thresholds are exceeded.