Student Loan Repayment Calculator Guide: Plans 1, 2 & 5 Explained
Everything you need to know about student loan repayments, interest rates, and when loans get written off.
📚 Quick Overview
Student loans in the UK work differently from other debts. You only repay when you earn above a certain threshold, and the debt is written off after a set period.
Plan 1
Pre-2012 students
£22,015 threshold
Plan 2
2012-2023 students
£27,295 threshold
Plan 5
Post-2023 students
£25,000 threshold
How Student Loan Repayments Work
The Basics
• You only repay when your income is above the threshold for your plan
• Repayments are 9% of income above the threshold
• Repayments are taken automatically through PAYE or self-assessment
• The debt is written off after 25-30 years (depending on your plan)
• Interest is charged daily but doesn't affect monthly repayments
Example Calculation
If you earn £35,000 and have a Plan 2 loan (threshold £27,295):
Income above threshold: £35,000 - £27,295 = £7,705
Annual repayment: £7,705 × 9% = £693.45
Monthly repayment: £693.45 ÷ 12 = £57.79
Plan 1: Pre-2012 Students
Key Details
- Repayment threshold: £22,015
- Repayment rate: 9% of income above threshold
- Interest rate: RPI or Bank of England base rate + 1% (whichever is lower)
- Write-off period: 25 years
- Typical loan amount: £3,000-£15,000
Interest Rates 2024/25
Current rate: 6.25% (RPI-based)
Previous rate: 6.25%
Rate cap: RPI or base rate + 1%
Plan 1 Advantages
- • Lower threshold means earlier repayments but smaller amounts
- • Lower interest rates compared to Plan 2
- • Shorter write-off period (25 years)
- • Generally smaller loan amounts
Plan 2: 2012-2023 Students
Key Details
- Repayment threshold: £27,295
- Repayment rate: 9% of income above threshold
- Interest rate: RPI + 3% while studying, then RPI + 0-3% based on income
- Write-off period: 30 years
- Typical loan amount: £27,000-£45,000
Interest Rates 2024/25
While studying: 9.25%
Income £27,295-£49,130: 7.25%
Income £49,131-£69,000: 8.25%
Income £69,000+: 9.25%
Plan 2 Considerations
- • Higher threshold means later repayments but larger amounts
- • Higher interest rates (up to 9.25%)
- • Longer write-off period (30 years)
- • Most graduates won't fully repay before write-off
Plan 5: Post-2023 Students
Key Details
- Repayment threshold: £25,000
- Repayment rate: 9% of income above threshold
- Interest rate: RPI + 3% while studying, then RPI + 0-3% based on income
- Write-off period: 40 years
- Typical loan amount: £27,000-£45,000
Interest Rates 2024/25
While studying: 9.25%
Income £25,000-£49,130: 7.25%
Income £49,131-£69,000: 8.25%
Income £69,000+: 9.25%
Plan 5 Changes
- • Lower threshold than Plan 2 (£25,000 vs £27,295)
- • Longer write-off period (40 years vs 30 years)
- • More graduates will repay in full
- • Higher total repayments for most graduates
Postgraduate Loans
Key Details
- Repayment threshold: £21,000
- Repayment rate: 6% of income above threshold
- Interest rate: RPI + 3%
- Write-off period: 30 years
- Maximum loan: £12,167 (2024/25)
Important Notes
Multiple loans: You can have both undergraduate and postgraduate loans
Separate repayments: Each loan has its own threshold and rate
Combined impact: Total repayments can be 15% (9% + 6%)
Should You Pay Off Your Student Loan Early?
Consider These Factors
Arguments FOR Early Repayment:
- • High interest rates (up to 9.25%)
- • Psychological benefit of being debt-free
- • Better mortgage applications
- • No risk of policy changes
Arguments AGAINST Early Repayment:
- • Most graduates won't repay in full
- • Better returns from investments
- • Repayments stop if you lose your job
- • Debt is written off after 25-40 years
Our Recommendation
For most graduates, it's better to focus on other financial priorities:
- • Build an emergency fund (3-6 months' expenses)
- • Save for a house deposit
- • Contribute to your pension
- • Invest in ISAs or other investments
How to Check Your Student Loan Balance
Online (Recommended)
Visit gov.uk/repaying-your-student-loan and log in with your Government Gateway account.
By Phone
Call the Student Loans Company on 0300 100 0611 (Monday to Friday, 8am to 8pm).
What You'll Need
- • Your National Insurance number
- • Your student loan reference number
- • Government Gateway account (for online access)
Calculate Your Student Loan Repayments
Use our free calculator to see exactly how much you'll repay each month
Start Calculating →