Career progression impact
Explore how raises, promotions and long-term salary growth change when student loans are repaid across different plans.
Typical raise
2–5% annually
High-earner impact
Interest & duration
Plan 2 RPI+3%
Write-off timing
25–40 yrs
Why salaries change outcomes
Repayments are a percentage of earnings above a threshold; higher salaries generally increase repayments and can either reduce balances faster or increase interest in income-linked plans.
How salary growth affects repayments
When your salary increases: monthly payments rise, which may reduce balances faster if payments exceed interest; however, Plan 2’s income-linked interest can offset repayments if you hit higher bands.
- Monthly payments increase proportionally
- You pay off principal faster if payments exceed interest
- Plan 2 can increase interest for higher incomes
- Write-off becomes less likely for fast-paying careers
Career trajectory patterns
📊Steady gradual progression
Example: £25k → £28k → £32k → £36k over 10 years
- Impact: Slow increases in monthly payments
- Best for: Plans with moderate interest (Plan 4, Plan 5)
- Outcome: May still reach write-off for large balances
💰Early career jump
Example: £25k → £45k within 3 years
- Impact: Fast payment increase
- Best for: All plans, avoids long interest accumulation
- Outcome: May fully repay the loan early
⚡Later-career growth
Example: £30k for 10 years, then £60k at year 15
- Impact: Balance grows then quick paydown
- Risk: High interest plans accumulate large balances
- Outcome: May pay off with higher total paid
🎓Plateau career
Example: £35k throughout career
- Impact: Consistent monthly payments
- Outcome: Likely reach write-off
- Strategy: Avoid overpaying — treat as a tax
Plan-specific career impact
| Plan | Early career growth impact | Late career growth impact |
|---|---|---|
| Plan 1 | High benefit, low interest | Still beneficial, 25yr write-off |
| Plan 2 | Critical: avoid 6.2% interest years | Moderate: balance usually high |
| Plan 4 | High benefit, low interest | Good: flat interest rate |
| Plan 5 | Moderate: long write-off | Lower: 40yr window |
Example scenarios modeled
📊Scenario A: Teacher (Plan 2, £45k)
Path: £27k → £38k → £45k over time
Outcome: Payments vary; balance grows to ≈£65k then lower; likely written off at year 30 with ≈£35k remaining.
Total paid: ≈£35k over 30 years
💰Scenario B: Software Engineer (Plan 2, £50k)
Path: £30k → £55k → £80k
Outcome: Rapid repayment, full pay-off at year 12, high interest (≈6.2%) increases totals.
Total paid: ≈£72k
🎓Scenario C: NHS Nurse (Plan 4, £20k)
Path: £28k → £35k → £40k
Outcome: Low/no payments for several years; balance grows minimally; likely partially written off.
Total paid: ≈£12k over 30 years
Strategic insights for different trajectories
If you expect high career growth
- Consider overpaying on Plan 2 to avoid high interest years (RPI + 3%)
- Monitor balance and interest; early lump-sum payments can reduce totals
- Aggressive repayment helps avoid long-term interest costs
If you expect stable/moderate income
- Write-off likely, so overpaying may not be worth it
- Focus on pension contributions (reduce taxable salary)
- Treat the loan as a graduate tax where appropriate
Model your scenario
Model your career trajectory using our calculators that accept salary growth inputs.
Model your salary growth
Use the Salary Impact and Combined calculators to model how promotions and raises change your repayments.