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Graduation Year Impact Calculator

Compare how different graduation years affect your student loan repayments and write-off terms

Why Graduation Year Matters

Student loan rules have changed significantly over time. Your graduation year determines your repayment plan, threshold, interest rates, and write-off period.

Applicable Plan: Plan 2 (2012-2023)

£

Your threshold: £27,295

£

Including tuition fees and maintenance loans

%

See how different graduation years compare side-by-side

Impact for 2020 Graduate

Your Loan Plan

Plan 2

2012-2023

Repayment Period

2021

→

2051

30 year write-off period

Current Monthly Payment

£58

9% of income above £27,295

Total Expected Repayment

£76,166

Remaining balance written off in 2051

Total Interest

£216,687

At 7.1% annual rate

Key Terms for Your Year

Threshold:£27,295
Repayment rate:9%
Interest rate:7.1%
Write-off:30 years

Major Policy Changes by Year

Pre-2012

Plan 1 Era

  • • Lower tuition fees (max £3,000/year)
  • • Threshold: ~£20,000 (now £22,015)
  • • 25-year write-off period
  • • Lower interest rates (RPI or Base+1%)
2012-2023

Plan 2 Introduction

  • • Tuition fees rose to £9,000/year
  • • Higher threshold: £27,295
  • • 30-year write-off period
  • • Higher interest rates (RPI + up to 3%)
2023+

Plan 5 Launch

  • • Tuition fees maintained at £9,250/year
  • • Threshold: £25,000
  • • 40-year write-off period (major change)
  • • Lower interest rates (RPI only)
  • • Plan 2 also changed to 40-year write-off

Understanding Graduation Year Impact

When you graduated determines which student loan plan applies to you, and this has a huge impact on how much you'll repay over your lifetime. The UK government has changed student loan terms several times over the past decades.

Why Your Graduation Year Matters

Different graduation cohorts face different conditions:

  • Repayment Threshold: When you start paying back (varies by plan)
  • Interest Rates: How quickly your debt grows while studying and after
  • Write-off Period: When remaining debt is cancelled (25-40 years)
  • Repayment Rate: Percentage of income above threshold (typically 9%)

Real-World Example

Consider two graduates with identical circumstances except their graduation year:

Graduate A (2010 - Plan 1):

  • Threshold: £22,015
  • Write-off: 25 years (2036)
  • Interest: ~4.6%
  • On £35,000 salary: £97/month

Graduate B (2024 - Plan 5):

  • Threshold: £25,000
  • Write-off: 40 years (2065)
  • Interest: ~7.1%
  • On £35,000 salary: £75/month

Graduate B pays less per month due to a higher threshold, but has a much longer write-off period. Over a lifetime, the total amounts repaid can differ dramatically based on career earnings trajectory.

The 2023 Changes

September 2023 saw major reforms that affected both new students (Plan 5) and existing Plan 2 borrowers:

  • New students moved to Plan 5 with a lower threshold (£25,000 vs £27,295)
  • Write-off periods extended from 30 to 40 years for both Plan 2 and Plan 5
  • Interest rates reduced to RPI only (no additional percentage)
  • These changes mean students will likely repay more over their lifetime

Planning Considerations

Understanding your graduation year's impact helps you:

  • Predict lifetime repayment amounts more accurately
  • Decide whether voluntary overpayments make financial sense
  • Plan for how long repayments will affect your budget
  • Understand if you're likely to repay in full or benefit from write-off

Who Benefits Most from Write-Off?

Lower and middle earners are more likely to have balances written off, while high earners typically repay their loans in full plus significant interest. Your graduation year determines how long this safety net lasts.

Key Insights

Locked In

Your graduation year permanently determines your loan plan. You can't switch plans later, even if new terms seem more favorable.

Trade-offs

Higher thresholds mean lower monthly payments but don't necessarily mean you'll pay less overall. Interest continues to accrue.

Longer Terms

Recent graduates face 40-year write-off periods vs 25 years for pre-2012 graduates. This extends the repayment burden significantly.

Want to Explore Other Scenarios?

Try our other calculators to understand salary growth impact, overpayment strategies, and more.