Student Loan Repayment Scenarios
Real-world examples of how student loan repayments play out over a 30-year career for different professions and income levels.
Understanding your student loan repayment journey is crucial, but generic advice often fails to capture the reality of different career paths. Our detailed scenarios model actual salary progressions, compound interest accumulation, and the long-term financial impact for five distinct career trajectories—from minimum wage workers who may never repay a penny, to high-earning city bankers who clear their debt in under a decade.
Why Scenarios Matter
Beyond Averages
The "average graduate" doesn't exist. A teacher's loan journey looks nothing like a banker's, and understanding your specific trajectory is crucial for financial planning. Our scenarios show the stark differences between career paths.
Compound Interest Reality
Most graduates don't realize that RPI + 3% interest means balances often grow faster than repayments can shrink them. Our scenarios demonstrate how compound interest works in practice—sometimes your balance increases even while you're making payments.
The Write-Off Question
For many moderate earners, write-off after 30 years isn't just likely—it's virtually guaranteed. Understanding whether you'll repay fully or reach write-off fundamentally changes your financial strategy and whether overpayments make sense.
Lifetime Cost Transparency
See the true cost of your degree—not just the initial loan, but what you'll actually pay back over 30 years. For some careers, you'll repay three times your initial borrowing. For others, you'll repay less than half. Know the reality before it happens.
How to Use These Scenarios
Each scenario provides a detailed year-by-year breakdown. Here's what to focus on as you read:
Compare the graduate starting salary to your expected income. If yours is higher or lower, the scenario outcomes will shift accordingly.
Look at how quickly (or slowly) earnings grow. Rapid progression changes everything. Stagnant wages mean write-off becomes more likely.
Watch whether the outstanding balance increases or decreases each year. Many borrowers are shocked to see balances rise despite making payments.
Compare how much is repaid versus the original loan amount. High earners often pay back 2-3x what they borrowed due to compound interest.
See whether the loan is fully repaid or written off after 30 years. This determines whether voluntary overpayments make financial sense.
Consider how career choices (promotions, job changes, part-time work) affect repayment. Small salary differences compound over decades.
Career & Income Analysis
Doctor Salary Progression
Medical career analysis from Foundation Years to Consultant level, examining the long-term cost of medical school debt.
Teacher Loan Repayment
Realistic look at teacher salary scales and what they mean for student loan write-offs versus repayment.
City Banker Rapid Repayment
High-earner scenario: Investment banking career path and the strategy of rapid loan clearance.
£30k Salary Timeline
Detailed year-by-year breakdown for a moderate graduate salary. See why the balance keeps growing.
Minimum Wage Reality
What happens to your student loan if you earn minimum or living wage? Understanding the safety net.
What These Scenarios Reveal
Income Level Dramatically Changes Everything
A minimum wage worker on £22,000 might repay just £8,000 over 30 years before write-off. A city banker earning £150,000+ will clear £60,000+ in debt within 8-10 years and pay back significantly more than borrowed due to high interest. The same loan, wildly different outcomes.
Write-Off Is Common, Not Rare
For teachers, social workers, NHS staff, and many other public sector professionals earning £25k-£40k, loan write-off after 30 years is almost certain. The majority of Plan 2 borrowers will never fully repay their loans. This isn't failure—it's how the system is designed.
Interest Rates Can Be Punishing
At RPI + 3%, interest accumulates faster than moderate earners can repay. Someone earning £30,000 makes monthly repayments of around £60, but interest adds £200+ monthly to their balance. The maths is stark: for many borrowers, balances grow every year despite making payments.
Early Career Matters Most for High Earners
Doctors, lawyers, and bankers benefit massively from rapid salary progression. Getting to £50k+ quickly means compound interest has less time to work against you. For high earners, the first 5-10 years post-graduation are critical—that's when you either escape the debt or watch it balloon.
Voluntary Overpayments Rarely Make Sense
Unless you're a very high earner certain to repay in full, overpaying your student loan is usually a poor financial decision. Money in a LISA, pension, or even a savings account typically provides better returns. The scenarios make this brutally clear—don't let guilt drive bad financial choices.
Want to Model Your Own Career?
These scenarios are examples. Use our advanced calculator to input your specific salary progression and loan details.