🎓Student Loan Scenarios

Plan 2 Student Loan at £30k Salary: Repayment Calculator

See exactly how much you'll repay on a Plan 2 student loan at a £30k salary - and how long until it's paid off.

Understanding This Scenario

With a £30,000 salary and a Plan 2 student loan, you'll repay 9% of everything you earn above the threshold of £28,470 (2025-26).

Your Annual Repayment:

** - Income above threshold: £30,000 - £28,470 = £1,530 - Annual repayment: £1,530 × 9% = £137.70 - Monthly repayment: £11.48

At this repayment rate, with typical loan balances (£40k-£50k), you're unlikely to fully repay before the 30-year write-off. But that's not necessarily bad - Plan 2 loans don't affect your credit score and are written off after 30 years.

Optimization Strategy

Understanding Your Options

At £30k with a Plan 2 loan, voluntary overpayments rarely make financial sense: - Interest accrues faster than your repayments - You'd need to significantly increase income to make a dent - The loan is written off after 30 years regardless

Better strategies: 1. Focus on career progression to higher salaries 2. Use spare cash for ISAs or pension (better returns) 3. Accept the repayment as a "graduate tax"

Frequently Asked Questions

How much will I repay on a Plan 2 loan at £30k salary?

At £30k, you'll repay approximately £138 per year (£11.50/month). This is 9% of your income above the £28,470 threshold.

Will I ever pay off my Plan 2 loan at £30k?

At this income level and typical loan balances (£40k-£50k), you likely won't fully repay before the 30-year write-off. Plan 2 loans are written off 30 years after you were first due to repay.

Should I make voluntary overpayments?

Generally no. At £30k with a large loan balance, the interest typically exceeds your repayments. You're usually better off using spare cash for savings or pensions unless you expect to earn significantly more soon.

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