Student Loan Calculator
UK income-contingent repayment · Plans 1, 2, 4 & Postgrad
Loan Plan
Display Currency
| Loan Balance | £30,000 |
| Repayment Threshold | £27,295 |
| Income Above Threshold | £7,705 |
| Monthly Repayment | £0 |
| Interest Rate | —% |
| Write-off After | 30 years |
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Frequently Asked Questions
How are UK student loan repayments calculated?
UK student loan repayments are income-contingent. You repay a percentage of your income above a threshold — not based on your loan balance. Plan 2 borrowers repay 9% of income above £27,295; if you earn below the threshold, you pay nothing regardless of your balance.
What is the interest rate on student loans?
Interest rates vary by plan and income. Plan 1 and Plan 4 charge RPI inflation rate. Plan 2 charges RPI + up to 3% depending on salary (RPI only below £27,295; RPI + 3% above £49,130). Postgraduate loans charge RPI + 3% always. Rates are updated each September.
When does my student loan get written off?
Plan 1 loans are written off 25 years after your first April repayment date (or when you reach age 65). Plan 2 loans are written off after 30 years. Plan 4 loans after 30 years. Postgraduate loans after 30 years. Any remaining balance — including interest — is cancelled with no tax implications.
Should I make voluntary overpayments on my student loan?
For most borrowers, especially on Plan 2, voluntary overpayments are not advisable. If your loan will be written off before you repay it in full, overpayments simply increase the amount you repay with no benefit. Only borrowers with high salaries and smaller balances who are on track to repay in full may benefit from overpayments.