Choose Your Plan
Select your student finance plan to get accurate repayment projections based on your specific thresholds and interest rates.
Understanding Student Finance Repayments
Our comprehensive guides help you make informed decisions about your student loan repayments.
How Student Loans Work
Everything you need to know about UK student loan repayments, thresholds, and write-off periods.
Read guide →Plan 2 vs Plan 5
Compare the key differences between Plan 2 and Plan 5 loans - interest rates, thresholds, and terms.
Read guide →Is Overpaying Worth It?
Should you make voluntary overpayments? We break down when it makes sense and when to avoid it.
Read guide →How Student Loan Repayments Work
UK student loans work differently from traditional debt. You only repay when earning above a threshold, and repayments are automatically deducted from your salary via PAYE at 9% of income above the threshold.
For Plan 2 (2012-2023 starters), the threshold is £27,295/year. For Plan 5 (2023+ starters), it's £25,000/year with a 40-year repayment term.
Student loans don't appear on your credit file in the traditional sense and won't affect your ability to get a mortgage - though lenders do consider the monthly repayment when assessing affordability.
Should You Overpay Your Student Loan?
The key question is whether you'll repay your loan in full before it's written off. If not, overpaying means paying more than necessary.
Consider overpaying if: You're a high earner likely to repay in full, or you want to reduce total interest paid over the loan term.
Avoid overpaying if: Your loan will likely be written off, you have higher-interest debt (credit cards), or you haven't built an emergency fund.
Use our calculator above to model your specific scenario and see exactly how overpayments would affect your total repayment.
Calculator Assumptions
Our calculator uses current 2025/26 thresholds and interest rates. You can adjust these in the "Adjust assumptions" modal if you want to model different scenarios.
- Default wage growth: 4% per year
- Default RPI/threshold growth: 2% per year
- Interest rates transition to historical averages over time
- Inflation assumption for "today's money" values: 2.5%
Results are estimates for illustration only. Actual repayments depend on your real income and future threshold changes announced by the government.
Plan 2 vs Plan 5: Which is Better?
Plan 2 (2012-2023): Higher threshold (£27,295), 30-year term, but interest can reach RPI + 3% for high earners.
Plan 5 (2023+): Lower threshold (£25,000), 40-year term, but interest is capped at RPI only (no additional margin).
While you have no choice as this is determined for you based on when you started university and where you went, the "better" plan depends on your earning trajectory. High earners may prefer Plan 5's lower interest, while average earners might prefer Plan 2's shorter write-off period.