Plan 2 Student Loan Repayment Calculator
The Plan 2 calculator works out your monthly student loan repayments based on your salary. Plan 2 is the most common student loan plan in England, covering graduates who started university between September 2012 and July 2023.
Enter Your Annual Salary
No repayments are due if your income is at or below £28,470
Loan Balance Projection
Default 5.5% — adjust to match your current rate
| Year | Estimated Balance | Status |
|---|---|---|
| Year 5 | £55533.19 | Repaying |
| Year 10 | £69299.66 | Repaying |
| Year 15 | £87291.87 | Repaying |
| Year 20 | £110806.98 | Repaying |
| Year 25 | £141540.28 | Repaying |
| Year 30 | £181707.48 | Written off — Year 30 |
Most Plan 2 graduates will not repay their loan in full. The outstanding balance is written off 30 years after the April following your graduation.
Who Is on Plan 2?
You have a Plan 2 student loan if you started an undergraduate course in England between 1 September 2012 and 31 July 2023. Welsh students who started from 2012 also have loans partly governed by Plan 2 rules, though Wales has its own arrangements for newer students.
How Plan 2 Repayments Are Calculated
You repay 9% of your income above the repayment threshold. For 2025/26, the threshold is £28,470 per year (£2,372.50 per month).
Example: If you earn £35,000 per year, you repay 9% of (£35,000 minus £28,470) = 9% of £6,530 = £587.70 per year, or about £48.98 per month.
When Does a Plan 2 Loan Get Written Off?
Your Plan 2 loan is written off 30 years after the April following your graduation. So if you graduated in June 2018, your loan is written off in April 2049.
Research consistently shows that the majority of Plan 2 graduates will not repay their loan in full before write-off. For many, the loan functions more like a graduate tax than a conventional loan.
Interest on Plan 2 Loans
Interest on Plan 2 loans is linked to the Retail Price Index (RPI) plus up to 3% depending on your income:
- While studying: RPI + 3%
- After graduating, income below £28,470: RPI only
- After graduating, income between £28,470 and £51,995: RPI + up to 3% (scales with income)
- After graduating, income above £51,995: RPI + 3%
Interest rates are updated each September. A government cap prevents the rate from exceeding certain benchmarks during periods of low commercial interest rates.
Frequently Asked Questions
Will I ever actually repay my full Plan 2 loan?
Many graduates will not. The Institute for Fiscal Studies has estimated that around 20 to 25% of Plan 2 graduates will repay in full. The rest will have a balance written off after 30 years. Higher earners are more likely to repay in full.
Does my loan balance growing because of interest mean I'll owe more?
For most graduates, yes — the balance will grow significantly before income rises enough to outpace interest. However, since the balance is eventually written off, a larger balance does not necessarily mean you will pay more in total. Your actual repayments depend only on your income, not your balance.
Can I check my balance?
Yes. Log in to your Student Loans Company account at gov.uk/repaying-your-student-loan. Your current balance, interest rate, and repayment history are all shown there.
Does my student loan affect my mortgage application?
It does not affect your credit score. However, lenders treat your monthly repayment as a committed outgoing when calculating affordability. See our full guide: Does a Student Loan Affect Getting a Mortgage?