Plan 2 Student Loan Calculator
For students who started their course September 2012 to July 2023
How much will I repay on a Plan 2 student loan?
Plan 2 applies to students who started undergraduate courses in England or Wales between September 2012 and July 2023. You pay back 9% of earnings above £29,385 a year. On a £35,000 salary that comes to roughly £42 a month. Whatever is left after 30 years gets written off, and most borrowers never repay in full.
Plan 2 Calculator
2012-2023 undergraduate loans with higher threshold and variable interest
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Enter your loan balance to see your forecast
Using Plan 2 defaults — Threshold: £29,385/yr, Interest: 6.2%, Repayment: 9%, Write-off: 30 years
How Plan 2 Repayments Work
Repayment Threshold
£29,385/year
You only repay on earnings above this threshold
Interest Rate
6.2%
RPI + up to 3% based on income
- Who this applies to: Students who started an undergraduate course in England or Wales between September 2012 and July 2023
- Repayment rate: 9% of earnings above the threshold
- Interest: Variable from RPI (if earning under threshold) to RPI + 3% (if earning over £52,195)
- Write-off: The remaining balance is written off after 30 years from when you became eligible to repay
- Example: If you earn £35,000/year, your monthly repayment would be approximately £42
Plan 2 Student Loan: Common Questions
- How much do I repay on a Plan 2 student loan?
- You repay 9% of everything you earn above £29,385 a year. Someone on a £35,000 salary pays roughly £42 a month. If your income sits below £29,385 you pay nothing.
- Will my Plan 2 student loan be written off?
- Yes. Any Plan 2 balance left after 30 years is written off completely. That clock starts the April after you graduate or leave your course. Most borrowers on average salaries will have their loan cancelled rather than paying it in full.
- What is the Plan 2 interest rate?
- Plan 2 interest starts at RPI for earnings below the threshold and rises to RPI plus 3% once you earn above £52,195. The rate right now is 6.2%. Interest is charged from the day your first loan payment reaches your bank account.
- Should I overpay my Plan 2 student loan?
- For most borrowers it is not worth overpaying because the loan is cancelled after 30 years anyway. Overpaying only saves money if you would otherwise clear the full balance. Try the calculator above to see where you stand.
- What is the difference between Plan 2 and Plan 5?
- Plan 5 replaced Plan 2 in September 2023. It has a lower threshold (£25,000 instead of £29,385), lower interest (RPI only, no extra 3%), and a longer repayment window of 40 years rather than 30. Which one works out cheaper depends entirely on what you earn over your career.