Loan Calculator for Student Loan Repayment – Estimate Your Loan Repayment
Need to estimate your loan repayment or understand how much is student loan repayment? Our free student loan repayment calculator helps you plan your student loan payments and calculate your monthly repayments. Whether you're wondering how is student loan repayment calculator or how is loan repayment calculator works, this tool provides accurate estimates for Plan 1, Plan 2, Plan 5, and Postgraduate loans for 2025.
Why Use Our Student Loan Repayment Calculator?
Understanding your student loan repayments is essential for financial planning. Our student loan repayment calculator student loan planner helps you:
- ✓Estimate your loan repayment based on your salary and loan balance
- ✓Plan your student loan payments with our student loan planner
- ✓Calculate monthly repayments for all UK student loan plans
- ✓View complete repayment schedule showing month-by-month breakdown
- ✓Understand total interest costs and repayment period
- ✓Use updated thresholds and rates for 2025
Student Loan Calculator Estimate Your Loan Repayment
Our student loan calculator estimate your loan repayment feature helps you understand:
- •Monthly payment amount based on your income and repayment plan
- •Total repayment amount including principal and interest
- •Repayment period and how long it will take to pay off your loan
- •Interest costs over the life of the loan
How Is Student Loan Repayment Calculator?
Wondering how is student loan repayment calculator works? Our calculator uses the UK's income-based repayment system:
Monthly Payment = (Annual Income - Repayment Threshold) × Repayment Rate ÷ 12
The repayment rate is 9% for Plan 1, Plan 2, and Plan 5, and 6% for Postgraduate loans.
Example: If you earn £30,000 per year on Plan 2 (threshold £27,295):
- • Annual repayment amount = (£30,000 - £27,295) × 9% = £243.45
- • Monthly payment = £243.45 ÷ 12 = £20.29
How Is Loan Repayment Calculator?
How is loan repayment calculator different from other loan calculators? UK student loans work differently:
- •Income-based repayments: Your repayments are based on your income, not a fixed monthly amount
- •Repayment threshold: You only repay when your income exceeds a certain threshold
- •Automatic write-off: Any remaining balance is written off after 30 years (or retirement age)
- •Interest accrual: Interest continues to accrue even if you're not making repayments
How Much Is Student Loan Repayment?
Wondering how much is student loan repayment? Your repayment amount depends on:
- •Your annual income: Higher income means higher repayments
- •Your repayment plan: Plan 1, Plan 2, Plan 5, or Postgraduate loan
- •Repayment threshold: You only repay on income above the threshold
- •Repayment rate: 9% for undergraduate loans, 6% for postgraduate loans
Use our calculator to see exactly how much you'll pay each month based on your specific circumstances.
Student Loan Repayment Calculator Student Loan Planner
Our student loan repayment calculator student loan planner helps you:
- ✓Plan your finances based on expected salary increases
- ✓See how different income levels affect your repayments
- ✓View complete repayment schedule month-by-month
- ✓Understand when your loan will be paid off or written off
Loan Calculator Student Loans
Our loan calculator student loans supports all UK student loan types:
- •Plan 1: Pre-2012 England/Wales, Scotland/Northern Ireland (threshold £22,015, 9% rate)
- •Plan 2: 2012-2023 England/Wales (threshold £27,295, 9% rate)
- •Plan 5: Post-2023 England/Wales (threshold £25,000, 9% rate)
- •Postgraduate Loan: Postgraduate loans (threshold £21,000, 6% rate)
Student Loan Repayment Calculator Student Loan Hero
Our student loan repayment calculator student loan hero provides comprehensive tools to help you:
- ✓Calculate accurate repayments for all UK student loan plans
- ✓View detailed amortization schedules
- ✓Understand interest costs and total repayment amounts
- ✓Plan your finances effectively
Can You Get a Bank Loan to Pay Off Student Loans?
Many people wonder: can you get a bank loan to pay off student loans? While technically possible, it's generally not recommended for UK student loans because:
- ⚠UK student loans are income-based: Repayments are affordable and based on your income
- ⚠Automatic write-off: Remaining balance is written off after 30 years, which may be better than paying off early
- ⚠No credit impact: Student loans don't affect your credit score
- ⚠Bank loans have fixed repayments: Unlike student loans, bank loans require fixed monthly payments regardless of income
- ⚠Higher interest rates: Personal loans often have higher interest rates than student loans
For most graduates, it's better to keep the student loan and let it be written off after 30 years rather than taking out a bank loan to pay it off early.
Key Tips for UK Student Loan Borrowers
- ⚠Student loan interest rates change annually. Check current rates on the Student Loans Company website (gov.uk).
- ⚠Repayments are automatically deducted from your salary if you're employed (PAYE).
- ⚠If you're self-employed, you'll need to declare your student loan on your Self Assessment tax return.
- ⚠Most graduates won't fully repay their loans before the 30-year write-off period.
- ⚠Making voluntary extra payments can reduce interest, but may not be financially beneficial for everyone.
- ⚠Student loans don't affect your credit score and are written off after 30 years (or retirement age).
FAQ: Loan Calculator for Student Loan Repayment
Q: How do I use the student loan repayment calculator?
A: Enter your loan balance, annual income (salary), repayment plan (Plan 1, 2, 5, or Postgraduate), and interest rate. The calculator will show your monthly payment, total interest, and repayment period.
Q: How much will I pay per month on my student loan?
A: Your monthly payment is calculated as 9% (or 6% for postgraduate) of your annual income above the threshold, divided by 12. If your income is below the threshold, you pay nothing.
Q: Can I get a bank loan to pay off my student loan?
A: While technically possible, it's generally not recommended. UK student loans have income-based repayments and are written off after 30 years, making them more affordable than most bank loans.
Q: What is the repayment threshold for UK student loans in 2025?
A: The threshold varies by plan: Plan 1 (£22,015), Plan 2 (£27,295), Plan 5 (£25,000), and Postgraduate (£21,000) for 2025. You only repay when your income exceeds this threshold.
Q: How does the student loan planner work?
A: The planner shows you how different income levels affect your repayments and provides a complete month-by-month repayment schedule. You can see when your loan will be paid off or written off.
Summary
Use our Loan Calculator for Student Loan Repayment to estimate your loan repayment, plan your student loan payments, and understand how much you'll pay. Whether you're calculating repayments for Plan 1, Plan 2, Plan 5, or postgraduate loans, this calculator provides the insights you need to plan your finances effectively for 2025.
Remember that UK student loans are designed to be affordable, with repayments based on your income. Most graduates won't fully repay their loans before the 30-year write-off period, which is perfectly normal and expected. Check the Student Loans Company website (gov.uk) for the most up-to-date information on interest rates and thresholds.