Student Loan Plan Comparison Tool

Why Compare Student Loan Plans?

The UK has five different student loan repayment plans, and each one has its own threshold, interest rate, and write-off period. These differences mean that the same graduate with the same salary and the same loan balance would repay very different amounts depending on which plan they are on. By comparing plans side by side, you can understand how each plan affects your finances — and, crucially, whether your loan would be repaid in full or written off.

This comparison tool is especially useful if you are unsure which plan you are on, or if you want to understand how the newer Plan 5 compares to the older Plan 2. Many current students and recent graduates are unaware of the significant differences between plans, and this can lead to poorly informed financial decisions — such as overpaying a loan that would have been written off.

How the Comparison Works

The tool above takes your loan balance, current salary, and projected salary growth rate, then calculates what would happen under each selected plan. For each plan, it projects:

• Total amount repaid — the sum of all your repayments over the life of the loan
• Total interest paid — how much of your repayments went towards interest charges
• Amount written off — the remaining balance cancelled at the end of the write-off period
• Years to repay — how long until the loan is either repaid or written off
• Outcome — whether you would pay off the loan in full or have the remainder cancelled

The calculations use the current 2026/27 thresholds and interest rates for each plan. They assume your salary grows at the rate you specify (default 2% per year) and that you make standard repayments with no voluntary overpayments.

Key Differences Between Plans

Repayment Thresholds

The repayment threshold is the amount you need to earn before repayments begin. The higher the threshold, the more you can earn before any student loan is deducted from your pay. For 2026/27:

• Plan 4 (Scotland): £33,795 — the highest, meaning Scottish graduates keep more of their pay
• Plan 2 (2012–2023 England/Wales): £29,385
• Plan 1 (pre-2012 England/Wales/NI): £26,900
• Plan 5 (post-2023 England): £25,000 — lower than Plan 2 despite being newer
• Postgraduate: £21,000 — the lowest threshold by a significant margin

Interest Rates

Interest rates vary dramatically across plans. Plans 1 and 4 use a simple formula (the lower of RPI or base rate + 1%), Plan 5 charges RPI only, Plan 2 uses an income-based sliding scale from RPI to RPI + 3%, and Postgraduate Loans always charge the maximum RPI + 3%. For 2026/27, this means rates range from 3.2% (Plans 1, 4, 5) to 6.2% (Plan 2 for high earners and all Postgraduate). Higher interest rates mean your balance grows faster, which can offset repayments and lead to more being written off. See our interest rates explained guide.

Write-Off Periods

Every UK student loan has a finite life. After the write-off period, any remaining balance is cancelled tax-free. The periods are: Plan 1 (25 years), Plans 2 and 4 (30 years), Postgraduate (30 years), and Plan 5 (40 years). The write-off is one of the most important features of UK student loans. For the majority of borrowers, it means the loan functions as a time-limited graduate tax rather than a traditional debt. Full details in our write-off guide.

Common Comparison Scenarios

Plan 2 vs Plan 5 — The Most Common Comparison

The most frequent comparison is between Plan 2 and Plan 5, since Plan 5 directly replaced Plan 2 for new students. At first glance, Plan 5's lower interest rate seems like a clear improvement. However, the lower threshold (£25,000 vs £29,385) and much longer write-off (40 vs 30 years) can result in higher total lifetime repayments for moderate earners. A graduate earning £35,000 pays £900/year under Plan 5 vs £505/year under Plan 2 — and does so for potentially 10 years longer.

Plan 1 vs Plan 2 — The Generational Divide

Plan 1 borrowers (pre-2012) typically have much smaller balances and lower interest rates, meaning more of them repay in full. Plan 2 borrowers, with balances 3–4 times higher and up to double the interest rate, are far more likely to see their loan written off. Comparing the two illustrates how fundamentally the economics of student loans changed in 2012.

Plan 4 vs All Others — The Scottish Advantage

Plan 4's high threshold (£33,795) and typically lower balances (thanks to SAAS covering tuition) make it the most borrower-friendly standard plan. Scottish graduates start repaying later and often owe less in total, resulting in more affordable repayments and a higher chance of full repayment.

What Should You Do With These Results?

Understanding whether your loan will be repaid in full or written off is the single most important insight for making financial decisions about your student loan. If your loan will be written off:

• Do not make voluntary overpayments — the money would be wasted on debt that gets cancelled
• Consider salary sacrifice — reduce your repayments while building pension savings (guide)
• Focus on other financial goals — emergency fund, high-interest debt, savings, investing

If your loan will be repaid in full, overpaying may save money on interest, but compare the rate with alternative uses of the money. Use our early repayment calculator to check. For full guidance, read should I repay early?