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Student loan repayment calculator

A student loan repayment calculator can give you an idea of how much you might expect to pay back and over what period of time.

Mortarboard on pennies for student loan

CONTENTS

  1. Student loan repayment calculator

  2. How are the results calculated?

  3. Student loan repayment plans

  4. Student loan repayment FAQs

Student loan repayment calculator

This calculator gives a broad indication of what you could repay for a Plan 2 loan if you’re from England or Wales and began university after autumn 2012, and before 1 August 2023 for England. It shouldn’t be considered as financial advice.

Student loan repayment calculator (Money Saving Expert)

How are the results calculated?

The calculator estimates how much you may repay overall, assuming your likely starting salary. The results are for illustrative purposes only since the exact repayments will depend on the actual salary earned throughout the period.

It’s important to note that repayments are based on your earnings, and that many students are unlikely to repay the loan before it is written off (see the foot of this page).

Student loan repayment plans

The repayment plan you're on will depend on when you started a university course and took out your loan, and the nation you were deemed to be living in before you started studying. You need to know which plan you have in order to know how much you’re likely to repay each month.

You may be on more than one plan if you’ve taken out more than one loan, for example for undergraduate (UG) or postgraduate (PG) study.

Plan name Type of loan When you began your studies
Plan 1 UG or PG loan from Northern Ireland 1998 onwards
Plan 2 UG/Advanced Learner Loan from England 2012/2013 – 31 July 2023
Plan 2 UG loan from Wales 2012 onwards
Plan 3 PG loan from England or Wales 2016 onwards
Plan 4 UG or PG loan from Scotland 1998 onwards
Plan 5 UG/Advanced Learner Loan from England From 1 August 2023
  • Plan 5 is new in 2023 for undergraduates from England. Undergraduates from Wales will remain on Plan 2
  • Plan 1 also applies if you were a student from England or Wales who took out a loan between September 1998–August 2012
  • If you were an EU student from outside the UK who received only a tuition fee loan, your plan will depend on the nation in which you studied and the date you took out that loan

In all cases, repayments are only due from the April after you finish your course – or four years after you began your course if you’re studying part-time. Even then, you’ll only pay once your income (before tax and other deductions) is above the threshold set for your plan.

Repayment Plan 1

From April 2022, repayments under this plan start when you earn over:

  • £22,015 a year
  • £1,834 a month
  • £423 a week

This threshold changes every April.

You pay 9% of the amount you earn over the threshold. For example, if your monthly income was £2,500, you'd earn £666 more than the current threshold. Your student loan repayment would be 9% of this amount – £59.94 per month.

Interest rates are usually set in September but may change ad hoc. Although they are based on the cost of living (measured by the Retail Price Index or RPI), they are capped if the Bank of England ‘base rate’ interest is low. From June 2023, Plan 1 interest rate is 5.5%.

Repayment Plan 2

Repayments under Plan 2 start when you earn over:

  • £27,295 a year
  • £2,274 a month
  • £524 a week.

Normally thresholds change on 6 April every year to keep pace with average earnings. Since 2021 the Plan 2 threshold has been frozen, and it’ll remain the same after April 2023.

For example, a monthly income of £2,500 is £226 above the current repayment threshold, and you’d pay 9% of this amount – £20 per month.

The interest rates for Plan 2 are more complicated than Plan 1, taking your income into account.

To keep the interest rate level with the cost of living, there’s a sliding scale based on the Retail Price Index (RPI). Loan interest rates are set in September each year and apply until the following August. Normally these are based on the RPI rate from the previous March.

Your annual income Usual Plan 2 interest rate
£27,295 or less RPI
£27,295 to £49,130 RPI plus up to 3%
Over £49,130 RPI plus 3%

However, after inflation pushed the RPI to 9% in March 2022, the government introduced a cap to keep interest rates in line with market rates for personal loans. The government confirmed that the maximum rate for 2022/23 will be 7.3% but for much of the year, rates have been lower.

You’ll also be charged interest while studying. From the date you receive your first payment until the April after you leave your course, the interest rate is normally RPI plus 3%.

While interest will impact on the amount of loan you owe, it doesn’t affect your monthly repayments. These are determined by how much you earn above the repayment threshold and are paused if your income drops below that threshold.

Postgraduate loan (Repayment Plan 3)

For a postgraduate loan from England or Wales (Master’s Loan or Doctoral Loan), repayments start when you earn over:

  • £21,000 a year
  • £1,750 a month
  • £403 a week

 

Unlike other student loans, there's no annual increase to this threshold.

You pay 6% of the amount you earn over the threshold. For example, if you earn £2,500 a month, you’ll pay back 6% of the £750 you earn over the threshold – £45 per month.

Postgraduate loan interest is RPI plus 3%. Normally set in September for the year ahead, it's based on the RPI from the preceding March. However there can be short-term variations to keep interest rates in line with the market rates for personal loans. Like the Plan 2 loans, interest for 2022/23 been capped at a maximum of 7.3% until August 2023.

Students with a postgraduate loan from Northern Ireland are on Plan 1; those from Scotland are on Plan 4.

Repayment Plan 4

Plan 4 was introduced in April 2021 after the Scottish Government increased the repayment threshold for students from Scotland (previously on Plan 1). The repayment threshold is:

  • £27,660 per year
  • £2,305 per month
  • £532 per week

This threshold changes every April.

You repay 9% of your income above this amount. If you earn £2,500 per month, you’d be £195 above the threshold, of which 9% will be due in repayments – £17.55 per month.

Interest rates for Plan 4 are nominally based on the Retail Price Index from the previous March – but if the bank base rate is lower, it’ll be set at 1% more than that, and may change during the year. From June 2023, the interest rate will be 5.5%.

Repayment Plan 5

Plan 5 is for students from England who take out undergraduate student finance 1 August 2023. No repayments will be taken until after April 2026, at which time the repayment threshold will be:

  • £25,000 per year
  • £2,083 per month
  • £480 per week

Thresholds will increase annually.

You repay 9% of your income above this threshold. If you earn £2,500 per month, that’s £417 over the threshold and 9% of this amount will be due in repayments – £37 per month.

Interest rates for Plan 5 will be based on the Retail Price Index.

Student loan repayment FAQs

Repaying more than one plan

You might be on more than one plan. If so, your repayments will start once your income is more than the lowest repayment threshold of the plans you’re on.

  • If you do not have a Plan 3 postgraduate loan (England and Wales), you’ll repay 9% of your income above the threshold, with a proportion going into each plan you’re repaying
  • If you do have a Plan 3 postgraduate loan, this is treated independently of other loans. It means you’ll repay 6% of your income over the Plan 3 threshold plus 9% of your income over the other loan threshold

Let’s say your annual income is £30,000 and you have a Plan 1 loan from Northern Ireland for an undergraduate degree and a Plan 4 loan from Scotland for postgraduate study, having moved to that nation.

  • Plan 1 has the lowest repayment threshold of the two, at £22,015. Your income is £7,985 more than this. It means you’ll pay 9% of this amount across the year – £59.88 per month
  • If you only had a Plan 1 loan, all the money you pay would go towards paying off that plan. As you have a Plan 1 and a Plan 4 loan, the loan repayment will be split between them
  • You still pay the same amount – £59.88 per month – but are paying off both loans

Alternatively, you could earn £30,000 but have a Plan 2 and a Plan 3 postgraduate loan from England:

  • Your Plan 3 loan has a repayment threshold of £21,000. Your income is £9,000 more than this. It means you’ll pay 6% of this amount across the year – £45.00 per month
  • Your Plan 2 undergraduate loan has a repayment threshold of £27,295, so your income is £2,705 more than this. You’ll pay back 9% of this amount – £20.28 per month
  • Your total monthly repayments are £45.00 plus £20.28 – a total of £65.28

What happens if you live or move abroad?

Student loans will still have to be repaid even if you live or move abroad for more than three months. Make sure you inform the Student Loans Company (SLC) of your employment and country of residence so they can calculate what you need to repay. If you don’t, you may be charged maximum interest while you’re away. 

The repayment rules stay the same, but different countries have different thresholds for repayment. Find out the thresholds and abroad rate of repayment for Plan 1, Plan 2, Postgraduate and Plan 4 loans.

Does my student loan get written off?

Your student loan will get written off after a number of years, calculated from the April after you graduate. If you took out a loan before or including 2005–2006 (or 2006–2007 if from Scotland), your loan is cancelled once you’re 65. Otherwise:

  • Plan 1 student loans will be written off after 25 years
  • Plan 2, Plan 3 (postgraduate) and Plan 4 student loans are written off after 30 years
  • Plan 5 student loans will be written off after 40 years

Contrary to popular belief and rumour, your student loan won’t get written off or cancelled if you move abroad for any number of years. However, it’s only likely to be high earners who will have repaid their loan in full before it's cancelled.

If you can no longer work because of a permanent disability and receive benefits because of this, your student loan may be cancelled. Contact the Student Loan Company with the evidence required and your customer reference number.

Can you pay it off quicker?

It’s possible to pay off your student debt more quickly by making extra repayments, over and above the normal repayments you make.

Think carefully and do your maths before doing this.

If you’re likely to be a high earner, it’s worth careful consideration. If you have a Plan 2 loan, your loan is subject to a higher interest rate. As you see your debt grow, you may decide to make extra repayments to help reduce the balance. However if you miscalculate, you may still not repay your loan before the cancellation date – meaning your extra repayments were in vain.

For most, your loan is more likely to be written off than repaid in full, and extra repayments won’t change that outcome. You can’t get extra repayments refunded, regardless of whether your circumstances change or your income for the year drops below the threshold.

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