How much will I repay on a Plan 2 student loan?

You repay 9% of your income above £27,295 per year (£2,274 per month). Your monthly repayment amount changes with your income, and your loan is written off after 30 years regardless of how much you've repaid.

What is the interest rate on Plan 2 student loans?

The interest rate varies with your income. While studying and until the April after graduation, it's RPI+3%. After that, it ranges from RPI (for incomes below £27,295) to RPI+3% (for incomes above £49,130), with a sliding scale between these thresholds.

Will I pay off my Plan 2 student loan in full?

Around 80% of Plan 2 borrowers are not expected to fully repay their loans before the 30-year write-off period. Whether you pay in full depends on your starting salary, career progression, and loan balance. Higher earners are more likely to repay in full.

Plan 2 Student Loan Calculator UK - Monthly Repayment Estimator

About Plan 2 Loans

Plan 2 loans apply to students who started university in England or Wales after September 2012. You repay 9% of income above £27,295 per year. Learn more about loan types.

Your Repayment Summary

Monthly Repayment

£20

9% of income above threshold

Annual Repayment

£243

Total to be Repaid

£7,304

Over the life of the loan

Total Interest Paid

£7,304

Expected Write-Off Date

April 2050

30 years after entering repayment

Current Interest Rate: RPI → RPI+3% (sliding) (5.0% total)

Why Trust This Calculator?

Based on official UK loan plans
No personal data collected
Calculators built by financial experts

Disclaimer:

Calculations are estimates based on current UK student loan rules. Results may change with future policy updates.

Reviewed by Michael Chen, Financial Advisor (Certified in Student Finance)

Related Calculators

Plan 5 Calculator

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Overpayment Calculator

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How Does the Plan 2 Student Loan Calculator Work?

This calculator helps you understand your Plan 2 student loan repayments based on your salary and graduation year. Plan 2 loans apply to students who started higher education in England or Wales from September 2012 onwards.

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 2 loans varies based on your income. While studying and until the April after graduation, interest is RPI + 3%. After that, it ranges from RPI (if earning below the threshold) to RPI + 3% (if earning £49,130 or more), with a sliding scale in between.

Plan 5 loans (for students starting from 2023/24) have a lower repayment threshold (£25,000), longer repayment term (40 years vs 30), and lower interest rate (just RPI, with no additional percentage). This means lower monthly payments but potentially paying more over the lifetime of the loan.

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

Sources & References

1.
Student Loan Repayment
GOV.UK
2.
Interest rates information
Student Loans Company
3.
Plan 2: Repayment Guide
GOV.UK

Our content is based on the latest information from official UK government sources. The calculators use current repayment thresholds and interest rates as defined by Student Finance England and equivalent bodies.

Understanding Your Plan 2 Student Loan

Plan 2 student loans have specific interest rates and repayment terms that affect how much you'll pay back over time. The interest rate varies based on your income, with higher earners paying more interest.

Related Resources

If you're making career decisions, you might also be interested in how student loans affect high earners or the interaction between student loans and taxes.

Plan 2 Student Loan Calculator