Plan 2 Student Loan Calculator
Estimate your monthly and total repayments for Plan 2 student loans in England and Wales.
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
£6,480
Over the life of the loan
Total Interest Paid
£2,120
Expected Write-Off Date
April 2050
30 years after graduation
Current Interest Rate: RPI + 3% (7.6% 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 vary based on future changes to interest rates, repayment thresholds, and government policy. For detailed advice, consult Student Finance England.
Reviewed by Michael Chen, Financial Advisor (Certified in Student Finance)
Related Calculators
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.
Key Facts About Plan 2 Student Loans
- Repayment Threshold: You only repay when you earn above £27,295 per year (£2,274 per month)
- Repayment Rate: 9% of income above the threshold
- Interest Rate: Variable based on RPI plus up to 3% depending on income
- Forgiveness Period: Any remaining balance is written off 30 years after entering repayment
How Plan 2 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: £27,295
- Income above threshold: £2,705
- Repayment rate: 9%
- Annual repayment: £243.45 (approx. £20 per month)
Common Questions About Plan 2 Repayments
When do I start repaying my Plan 2 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.
Does early repayment make sense?
For most borrowers, making extra payments may not be financially advantageous since many won't fully repay before the loan is forgiven. Use our Overpayment Calculator to see if voluntary repayments would benefit you.
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 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 CalculatorSources & References
- 1.Student Loan Repayment
GOV.UK
- 2.Interest rates information
Student Loans Company
- 3.Plan 2: When you repay
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
- How student loan interest rates work
- Compare Plan 2 vs new Plan 5 loans
- Check when your loan will be written off
- Common repayment questions
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.