Student Loan Repayment Calculator

📌 Monthly repayment of £57.79 — just £2.89 per working day. On a £35,000 salary, most graduates will never fully repay the loan before the 30-year write-off.

It's not like normal debt

Student loan repayments function more like a graduate tax than a traditional debt. You only pay when earning above the threshold, and the balance is written off after 30 years regardless of how much remains. This makes early voluntary repayment counterproductive for most graduates.

Career planning

Understanding your repayment amount helps with budgeting and salary negotiation. A £5,000 pay rise from £35,000 to £40,000 increases student loan repayments by only £37.50/month — the tax impact is far smaller than people assume.

❌ Making voluntary overpayments

If you'll never repay the full balance (most won't on Plan 2), voluntary overpayments are money thrown away — you'd have been forgiven that amount after 30 years. Only overpay if you're confident of earning £50,000+ for most of your career.

❌ Confusing with Plan 1

Plan 1 (pre-2012) has a lower threshold (£22,015) but lower interest rates. Plan 2 has a higher threshold but RPI + 3% interest. Your repayment strategy should differ based on which plan you're on.