Student Loan Comparison
Student Loan
Plan 1 vs Plan 2
Plan 1 Threshold
£24,990
Plan 2 Threshold
£27,295
Compare how Plan 1 and Plan 2 student loans differ in monthly repayments, total cost and write-off timelines. Enter your salary and loan balance to see a year-by-year simulation of both plans side by side.
Your Details
Plan 2 costs less overall
You pay £0 less in total
Plan 1
Plan 2
How the Plan 1 vs Plan 2 calculator works
The calculator simulates both student loan plans year by year. It takes your current salary and outstanding balance, applies the correct threshold and repayment rate for each plan, adds annual interest, and shows you how the balance decreases over time. If the balance isn't cleared before the write-off date (25 years for Plan 1, 30 years for Plan 2), it shows how much gets written off.
Plan 1 has a lower repayment threshold (£24,990) meaning you start repaying sooner, but it also has a lower interest rate (6.25%) and gets written off after 25 years. Plan 2 has a higher threshold (£27,295) so you keep more of your salary, but the interest rate is higher (7.25%) and it takes 30 years to write off. The "winner" depends on your salary trajectory and balance.
For most graduates on average salaries, neither plan gets fully repaid — the remaining balance is written off. In that scenario, the plan with the higher threshold (Plan 2) often costs less because you make smaller monthly payments. For high earners who will clear the loan, Plan 1 costs less due to the lower interest rate. Use our student loan calculator for a detailed single-plan breakdown.
Frequently asked questions
What is the difference between Student Loan Plan 1 and Plan 2?
Plan 1 is for students who started before September 2012. Threshold £24,990, written off after 25 years, interest 6.25%. Plan 2 is for September 2012 onwards. Threshold £27,295, written off after 30 years, interest 7.25%. Both deduct 9% above the threshold.
Which student loan plan am I on?
If you started before 1 September 2012, you're on Plan 1. If you started on or after 1 September 2012 in England or Wales, you're on Plan 2. Check your Student Loans Company account or payslip.
Should I pay off my student loan early?
Only if you're a high earner who will repay in full before write-off. If the loan will be written off with balance remaining, early repayment wastes money. Use this calculator to see whether you'll clear it at your current salary.