UK Student Loan Repayment Calculator

How UK Student Loans Work

UK student loans are fundamentally different from US student loans.. automatically written off:

You repay 9% of everything you earn above the threshold for your plan. If your income drops below the threshold, repayments pause. If you never earn above the threshold, you pay nothing and the loan is written off at the end of the term.

Repayment Thresholds by Plan

• Plan 1 £22,015 / year.
• Plan 2 £27,295 / year.
• Plan 4 £31,395 / year.
• Plan 5 £25,000 / year. 40 years (longer than other plans).

Interest Rates by Plan

• Plan 1 1.25%:
• Plan 2 Variable (RPI + 0% to +3%):
  • While studying or earning ≤ £27,295: RPI (Retail Price Index)
  • Earning £27,296 – £49,130: RPI + up to 3% (sliding scale)
  • Earning over £49,130: RPI + 3%
  This makes Plan 2 the most expensive in terms of interest.
• Plan 4 1.25%.
• Plan 5 1.25%: 40-year write-off term (10 years longer than others).

Key Things to Know

• Your monthly repayment is always 9% of your salary above the threshold, spread across 12 months. It is deducted from your payslip before you receive it, similar to tax.
• Interest accrues daily on the outstanding balance. Even if you're making repayments, the balance can grow in the early years if interest outpaces your payments.
• The loan does not affect your credit score:
• Voluntary overpayments are generally not recommended for most borrowers because the loan will be written off eventually. Only those certain to repay in full should consider it.
• The write-off period is from the first April after graduation (or leaving your course), not from when you started repaying. For Plan 5, it's 40 years; for others, 30 years.
• If you move abroad, you must still repay based on your overseas income, though the threshold is different and you must notify the SLC of your address.