Plan 2 - See how your loan really works
Median for 22-29 year olds: £33,696 (ONS 2025)
Average balance: £53,000
Monthly Repayment
£37.22
Deducted from your salary
9% over £28,470/year
Monthly Interest Added
£141.33
Added to your balance
Interest rate: 3.2%
Net Monthly Change
+£104.11
Debt increasing
Earning ≤ £28,470
3.2% (RPI)
Earning £28,471 - £51,245
3.2% → 6.2% (scaled)
Earning ≥ £51,245
6.2% (RPI + 3%)
Your rate: At £33,696, you're between the thresholds, so your rate is 3.89%
Your loan balance is growing
At your current salary, the interest added exceeds your repayments.
How Plan 2 works: You repay 9% of your income above £28,470/year. Interest varies from 3.2% (RPI) to 6.2% (RPI+3%) based on your income. The loan is written off after 30 years from the April after you graduated.
Let others know how student loans really work
Student loan thresholds and rates from gov.uk.
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