Plan 1 vs Plan 2
Plan 2 replaced Plan 1 for English and Welsh students from September 2012.
Figures as of .
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| Plan 1 | Plan 2 | |
|---|---|---|
| Repay above | £26,900 | £29,385 |
| Rate above threshold | 9% | 9% |
| Interest now | 4.1% | 6.0% (max) |
| Interest rule | The lower of RPI or the Bank of England base rate + 1% | RPI + 3% while studying, then RPI to RPI + 3% based on income, subject to the current cap |
| Write-off rule | 25 years after the April you were first due to repay (or age 65 if your first loan payment was before 1 September 2006) | 30 years after the April you were first due to repay |
Monthly repayment
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| Salary | Plan 1 | Plan 2 | Less each month |
|---|---|---|---|
| £30,000 | £23 | £5 | Plan 2 |
| £45,000 | £136 | £117 | Plan 2 |
| £60,000 | £248 | £230 | Plan 2 |
Plan 2 takes less each month at every salary here because its threshold is higher. Interest and the write-off decide the total over the loan's life, and that needs a forecast.
Each plan in full
About these estimates
Estimates, not financial advice. Check the assumptions and sources on this page before making a decision.
Limitations
Results may be inaccurate and government policy can change. Do your own research. You use this information at your own risk; we cannot accept liability if things go wrong.