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Frequently Asked Questions About UK Student Loan Repayments

Do UK student loans get written off?

Yes. UK student loans are written off after a set number of years depending on your plan:

• Plan 1: 25 years after you’re first due to repay, or when you turn 65 (whichever comes first).
• Plan 2: 30 years after the April you were first due to repay.
• Plan 4 (Scotland): 30 years after the April you were first due to repay.
• Postgraduate loans: 30 years after the April you were first due to repay.

Our calculator shows whether you’re more likely to repay in full before write-off or still have a balance cancelled at the end.

What happens if my salary is below the repayment threshold?

If your salary is below the repayment threshold for your plan, you won’t make any repayments. Interest still accrues on the loan, but no money is taken until your income goes above the threshold.

Do I repay Postgraduate and Plan 2 loans at the same time?

Yes. If you have both a Plan 2 and a Postgraduate loan, repayments are collected at the same time:

• 9% of income above the Plan 2 threshold
• 6% of income above the Postgraduate threshold
  This means you can repay up to 15% of your income above the thresholds if both loans are active.

Does interest increase my student loan balance?

Yes. Interest is applied monthly to your outstanding balance. The rate varies depending on your loan type and government policy (e.g., RPI-linked for Plan 2 and PG loans). That’s why our calculator includes editable interest rates so you can see how balance growth affects your repayments.

Can I repay my student loan early?

You can make voluntary overpayments, but for many borrowers — especially on Plan 2 and Postgraduate loans — the loan is likely to be written off before it’s fully cleared. Our calculator helps you compare scenarios to decide whether overpaying is worthwhile.

Does my student loan affect my credit score?

No. UK student loans do not appear on your credit report. They are collected via PAYE (or Self Assessment if self-employed) and don’t directly affect your credit rating. However, they do reduce your take-home pay, which lenders may consider when assessing affordability.

How to Use the UK Student Loan Repayment Estimator

Understand how much you’ll repay on your UK student loan—and for how long—across Plan 1, Plan 2, Plan 4 (Scotland) and Postgraduate loans. This tool models salary growth, interest accrual and write-off rules to give you a realistic projection.

Step 1: Enter your salary

• Add your current annual salary (before tax).
• The tool instantly estimates your current monthly repayment based on your selected plan thresholds.

Step 2: Set salary growth

• Choose a salary growth rate (% per year) to reflect promotions or inflation-linked rises.
• We compound this monthly so long-term projections better match real life.

Step 3: Select your loan plans

• Tick any plans you have: Plan 1 / Plan 2 / Plan 4 / Postgraduate.
• You can run multiple plans at the same time (e.g., Plan 2 + Postgrad). The tool adds repayments for each plan correctly.

Step 4: Check or tweak plan settings

Each plan has editable assumptions:

• Balance outstanding (£)
• Repayment threshold (£) (income above this is chargeable)
• Repayment rate (% of income above the threshold) — typically 9% for Plan 1/2/4 and 6% for Postgrad
• Interest rate (% per year) — interest accrues monthly on the balance
• Write-off period (years) — loans are written off after a set number of years if not fully repaid

Tip: Government thresholds and interest rules change over time. Keeping these inputs editable makes the calculator future-proof.

Step 5: Choose projection length

• Set how many years you want to model (e.g., 25–30 years).
• The tool projects balances, repayments, interest, and write-off outcomes across your timeline.

Step 6: Review your results

• Monthly repayment now — what you’d pay today at your current salary.
• Total repaid over the projection across all plans.
• Written off (estimate) — any remaining balance if the loan reaches its write-off date.
• Remaining at end — if you stop the model early, what would still be owed.
• Timeline notes per plan:
  • “Fully repaid around year 18” or
  • “Likely written off after 30 years with £X remaining”.

Interactive charts

• Balances over time: See total and per-plan balances decline (or grow if interest outpaces repayments) as your salary changes.
• Hover/tap to inspect year-by-year values.

What the different UK plans mean

• Plan 1: Lower threshold; typically older loans; different write-off rules (often 25 years or at age 65 depending on start year).
• Plan 2: Most common for undergraduates since 2012 in England/Wales; 30-year write-off.
• Plan 4 (Scotland): Scottish undergraduate loans; thresholds differ slightly; 30-year write-off.
• Postgraduate: Repaid at 6% above its own threshold, on top of any Plan 1/2/4 repayments; 30-year write-off.

Why this calculator is useful

• Models multiple plans simultaneously (common in the UK).
• Accounts for salary growth and monthly interest accrual.
• Shows whether you’re likely to repay in full or see a write-off, which is crucial for long-term planning.
• Great for comparing scenarios like changing jobs, taking a pay rise, or adjusting plan assumptions.

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Free UK Student Loan Calculator: estimate monthly repayments for Plan 1, Plan 2, Plan 4 and Postgraduate loans. Model salary growth, interest and write-off to see total repaid vs written off