Student Loan Plan 1 vs Plan 2 Calculator
United Kingdom – Student loans
Compare Plan 1 and Plan 2 repayments
See how much you repay under each UK student loan plan at your income. Both charge 9% above a threshold — but the thresholds and interest differ, which changes your monthly repayment.
How UK student loan repayments work
On both Plan 1 and Plan 2 you repay 9% of the income you earn above a repayment threshold — not 9% of your whole salary. If you earn below the threshold, you repay nothing. Repayments are collected automatically through PAYE, like tax, so you never have to arrange them yourself. The key difference between the two plans is the threshold and the interest rate.
Plan 1 vs Plan 2: the differences
| Feature | Plan 1 | Plan 2 |
|---|---|---|
| Who is on it | Courses before Sept 2012 (Eng/Wales); Scotland & NI | Courses from Sept 2012 (Eng/Wales) |
| Repayment threshold | Lower | Higher |
| Repayment rate | 9% above threshold | 9% above threshold |
| Interest | Lower (inflation / base rate linked) | Higher (up to RPI + 3%) |
| Written off after | ~25 years | ~30 years |
Because Plan 2 has a higher threshold, you often repay less per month than on Plan 1 at the same salary — but higher interest means the balance can grow faster.
Limitations & disclaimer
This is an estimate using static thresholds; the actual thresholds and interest rates are set each year by the government and change with inflation. It also does not model Plan 4 (Scotland) or postgraduate loans. Check your current threshold on gov.uk for exact figures.
FAQs
Am I on Plan 1 or Plan 2?
In England and Wales, if you started your course before 1 September 2012 you are usually on Plan 1; if you started on or after that date you are usually on Plan 2. Students from Scotland and Northern Ireland are generally on Plan 1. Check your student loan account if you are unsure.
How much do I repay?
On both plans you repay 9% of the income you earn above the repayment threshold — not 9% of your whole salary. The difference is the threshold: Plan 2 has a higher threshold, so you start repaying at a higher income and often repay less per month than on Plan 1 at the same salary.
What is the difference between Plan 1 and Plan 2?
Plan 1 has a lower repayment threshold and lower interest (linked to inflation or the Bank of England base rate). Plan 2 has a higher threshold but higher interest (up to RPI plus 3%). So Plan 2 borrowers start repaying later but can accrue more interest.
When is the loan written off?
Any remaining balance is written off after a set period — commonly 25 years for Plan 1 and 30 years for Plan 2 in England — regardless of how much you have repaid. Repayments also stop if your income drops below the threshold.
Does a student loan affect my credit score?
No. UK student loans do not appear on your credit file and do not directly affect your credit score, although the monthly repayment reduces your take-home pay, which lenders may consider for affordability.