CalculatorsStudent loan
Should you overpay your student loan?
Most student loans are written off before they're paid back. If yours will be, every pound you overpay is a pound you'd never have had to pay. Two quick steps show whether you're on track to clear it, then whether overpaying or investing the money leaves you better off.
General information, not financial advice. A simplified yearly model. 2026/27 repayment thresholds: Plan 1 £26,900 (£28,005 in 2027/28), Plan 2 £29,385 (frozen until April 2030), Plan 4 £33,795, Plan 5 £25,000, Postgraduate £21,000; 9% of income above the threshold (6% for Postgraduate). Interest from September 2026: Plan 1 and Plan 4 4.1%; Plan 5 4.1% (RPI); Plan 2 4.1% to 7.1% depending on income (£29,385 to £52,885), capped at 6% until August 2027; Postgraduate 7.1%, capped at 6%. Write-off: Plan 1 25 years after first due to repay, Plans 2 and 4 and Postgraduate 30 years, Plan 5 40 years. Sources: GOV.UK, Cintra, IFS. Check your own loan on your student loan account.
The worked example
Should you overpay your student loan? For many graduates, it costs tens of thousands
A student loan feels like a debt to clear. For many graduates it works more like a tax, and paying it off early only shrinks the amount that would have been written off. Here's how to tell which you are.