Projected balance over time
Total repaid (today's money)
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This is a simplified educational model. It assumes steady salary growth, constant interest and inflation rates, annual repayments of 9% of income above the threshold (6% for postgraduate loans), and that the threshold rises with inflation. Real UK student loan rules vary and change over time - always check the official figures on GOV.UK before making decisions.
Total repaid vs. starting salary
Using all your other settings, this sweeps the starting salary across the x-axis to show the total you'd repay over the life of the loan - in cash and in today's money. The dot marks your current salary.
How to read these charts
- Lowest earners often repay the least overall. If your salary stays below the repayment threshold, you may pay little or nothing - and any remaining balance is written off at the end of the term.
- The very highest earners also come out well. They clear the whole balance quickly, so interest has less time to compound and they stop paying once the loan is gone.
- Middle earners frequently pay the most. They earn enough to make sizeable repayments, but not enough to clear the balance early - so interest keeps building and they pay for most (or all) of the term.
- It behaves more like a graduate tax than a normal loan. Repayments are a percentage of income above the threshold, not a fixed instalment, so what you pay tracks your salary rather than the size of the debt.
- Overpaying only helps if you'll actually clear the balance anyway. If your projection shows a write-off, extra voluntary payments may just hand money towards a part of the loan that you'd never have needed to repay otherwise.
- Watch the real (inflation-adjusted) line. A large future balance is worth less in today's money - the gap between the cash and real lines shows how much inflation quietly erodes the debt over time.
- Consider the liklihood of any unpaid gaps in employment. Interest will accrue in these periods and will push back the timing of loan repayment (but not the write-off date).
