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Middle earners repay the most.

The UK student loan is sold as a fair deal. On a middle income it’s a real, expensive debt — see where you land on the curve.

Independent · GOV.UK sourced · Updated May 2026

Fig. 1 — Lifetime repaid by salary · Plan 2
Your loan breakdownAt £45,000 salary

Modelled on 4% salary growth, thresholds frozen then +2%/yr, and 3.2% RPI.

Salary£45,000/ year+4%/yr

Four rules decide what you repay

No estimates or averages hidden in the model — these are the published figures for the 2026/27 tax year, applied plainly.

01

You repay above a set salary

On Plan 2 you pay 9% of everything you earn over £29,376 a year. Earn less in a month and you repay nothing that month.

Plan 2 threshold · £29,376
02

Interest is linked to RPI

The balance grows with inflation. Interest runs from RPI up to RPI + 3%, set by how much you earn — not by a fixed headline rate.

RPI to RPI + 3%
03

The balance clears at 30 years

Anything unpaid 30 years after you were first due to repay is cancelled. On a middle income, reaching that point is the norm, not the exception.

Plan 2 write-off · 30 years
04

GOV.UK figures, kept current

Thresholds, repayment rates and the RPI figure come straight from GOV.UK and the Bank of England, and are refreshed when they change.

2026/27 tax year

What changes your total

Each figure is the change to lifetime repayment for your selection above (£45,000 · Plan 2) — everything else held constant.

Overpay £100 a month−£40,667

Voluntary payments clear the balance about 10 years early and cut off the interest that would otherwise keep rolling up.

Open the overpayment calculator
Earn £15,000 more a year−£44,737

A higher salary clears the loan before the write-off, so you pay less overall — not more.

Take a one-year career break−£800

A year at little or no income pauses repayments; with the balance written off anyway, you simply repay less over the term.

Go deeper on your own numbers

Free, independent, and built on the same GOV.UK figures as the calculator above.