Question 1

What percentage of my student loan repayments go towards interest?

Accepted Answer

It depends on your salary, plan type, and interest rate. Lower earners may find that most of their repayments cover interest rather than reducing the balance. Use our interest breakdown tool to see your exact split between interest and principal payments.

Question 2

Why do I pay more in interest than my original loan?

Accepted Answer

Student loan interest accrues from the day your loan is paid out, including while you study. For Plan 2 borrowers, interest can be RPI + up to 3%, meaning your balance can grow faster than your repayments reduce it — especially in the early years when your salary is lower.

Interest Breakdown

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How Interest Works

RPI vs CPI

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