Plan 1 Student Loan Calculator
Estimate your monthly and total repayments for Plan 1 student loans in England and Wales (pre-2012).
About Plan 1 Loans
Plan 1 loans apply to students who started university in England or Wales before September 2012, or who studied in Northern Ireland. You repay 9% of income above £22,015 per year.
Your Repayment Summary
Monthly Repayment
£60
9% of income above threshold
Annual Repayment
£719
Total to be Repaid
£17,975
Over the life of the loan
Total Interest Paid
£2,975
Expected Write-Off Date
April 2035
25 years after graduation
Current Interest Rate: RPI only (4.6% total)
Related Calculators
How Does the Plan 1 Student Loan Calculator Work?
This calculator helps you understand your Plan 1 student loan repayments based on your salary and graduation year. Plan 1 loans apply to students who started higher education in England or Wales before September 2012, or who studied in Northern Ireland.
Key Facts About Plan 1 Student Loans
- Repayment Threshold: You only repay when you earn above £22,015 per year (£1,834 per month)
- Repayment Rate: 9% of income above the threshold
- Interest Rate: The lower of RPI or Bank of England base rate plus 1%
- Forgiveness Period: Any remaining balance is written off 25 years after entering repayment
How Plan 1 Repayments Work
If you earn £30,000 per year, you'll repay 9% of the amount over the threshold:
- Annual income: £30,000
- Repayment threshold: £22,015
- Income above threshold: £7,985
- Repayment rate: 9%
- Annual repayment: £718.65 (approx. £60 per month)
Common Questions About Plan 1 Repayments
When do I start repaying my Plan 1 loan?
You'll start repaying from the April after you finish your course, but only if you're earning above the repayment threshold. Repayments are made automatically through the UK tax system (PAYE) or via Self Assessment if you're self-employed.
How does Plan 1 differ from Plan 2?
Plan 1 has a lower repayment threshold (£22,015 vs £27,295), a lower interest rate (just RPI or Base Rate +1%, whichever is lower), and a shorter forgiveness period (25 years vs 30 years). This generally means higher monthly repayments but potentially paying less interest overall.
What happens if I go abroad?
If you move overseas, you'll still need to repay your student loan. However, the repayment threshold will be different based on the cost of living in your new country of residence. You'll need to update the Student Loans Company about your circumstances and income.
Frequently Asked Questions
No, your student loan doesn't appear on your credit file and won't affect your credit score. However, student loan repayments are considered in affordability assessments for mortgages and other loans.
Interest on Plan 1 loans is set annually at the lower of either the RPI inflation rate or the Bank of England base rate plus 1%. This typically results in a lower interest rate than Plan 2 loans, meaning less interest accrues on your outstanding balance.
Unlike Plan 2 loans, Plan 1 borrowers are more likely to repay their loan in full before the 25-year write-off period due to the lower threshold and lower initial loan amounts. Therefore, voluntary overpayments might be worth considering, especially if you have a high income or a relatively small balance remaining.
Ready to see if you could save money?
Try our overpayment calculator to see if making extra payments could help you save money on your student loan.
Try Our Overpayment Calculator