Student Loan Overpayment Calculator
Find out if making voluntary overpayments on your student loan is financially worthwhile, based on your loan type, income, and repayment timeline.
Student Loan Overpayment Calculator
Find out if making voluntary overpayments on your student loan is worth it.
Your Details
Threshold: £27,295 | Rate: 9%
Annual overpayment: £1,200
Overpayment Analysis
Overpayments may not be financially optimal.
Your loan may be written off before you fully repay it.
Current Interest Rate
0.0%
Interest Saved
£0
Standard Repayment Time
0 years
With Overpayments
0 years
Time Saved
None
Why isn't it worthwhile?
Based on your income and loan details, your loan is projected to be written off before full repayment. Making voluntary overpayments would increase your total lifetime payments.
Understanding Overpayments
Voluntary overpayments reduce your loan balance faster and can save interest, but they're not always financially optimal.
If your loan is likely to be written off before full repayment (common for Plan 2 and Plan 5 borrowers), overpaying means you'll pay more than necessary over the lifetime of the loan.
Should You Overpay Your Student Loan?
Making voluntary overpayments on your student loan can save you money in interest and help you repay faster, but it's not always the best financial decision.
When overpayments make sense
- You have a high income and will pay off your loan in full before the write-off date
- Your loan has a high interest rate (like Plan 2 for high earners or Postgraduate loans)
- You're close to paying off your loan completely
When overpayments don't make sense
- You're unlikely to pay off your loan before it's written off
- You have other higher-interest debts (e.g., credit cards, personal loans)
- You could earn a better return by investing the money elsewhere
- You need the money for other financial priorities (e.g., emergency fund, house deposit)
Why many Plan 2 and Plan 5 borrowers shouldn't overpay
Research suggests that around 80% of Plan 2 and Plan 5 borrowers will not fully repay their loans before they're written off. For these graduates, making voluntary overpayments would mean paying more than necessary over the loan's lifetime.
Read our full guide on overpaying student loans →Related Calculators
Frequently Asked Questions
Should I make overpayments on my student loan?
It depends on your loan plan, income, and financial goals. For Plan 2 and Plan 5 loans, many graduates won't fully repay before the loan is written off, making overpayments financially inefficient. Use our calculator to analyze your specific situation.
How do I make voluntary student loan overpayments?
You can make voluntary overpayments through your Student Loans Company online account, by bank transfer, or by contacting SLC directly. Overpayments go directly toward reducing your loan balance.
Will overpaying my student loan improve my credit score?
No, UK student loans don't appear on your credit file and don't affect your credit score. Overpaying won't improve your creditworthiness, though reducing your loan balance decreases your monthly outgoings.