Plan 1 (pre-2012) vs Plan 2 / Plan 5 (post-2012)
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
Anyone who started UK higher education before September 2012 in England/Wales.
Plan 2: UK undergrads 2012-2023. Plan 5: UK undergrads from 2023 onwards. The 40-year write-off under Plan 5 is significant — most borrowers will repay much longer.
| Aspect | Plan 1 (pre-2012) | Plan 2 / Plan 5 (post-2012) |
|---|---|---|
| Repayment threshold | £26,900/yr | Plan 2: £29,385 / Plan 5: £25,000 |
| Repayment rate | 9% above threshold | 9% above threshold |
| Write-off period | 25 years | Plan 2: 30 years / Plan 5: 40 years |
| Interest rate | RPI (lower) | Plan 2: up to RPI+3% / Plan 5: RPI |
| Who it affects | Pre-2012 starters (England/Wales) | Post-2012 (E/W) starters |
Frequently asked
Should I voluntarily overpay my student loan?
Usually no — for most people the loan writes off before full repayment, so overpaying just means you paid more than you had to. The exception: if your income is consistently high (£50k+ over a 30-year career), a Plan 2 loan might not write off, and overpaying could save you money. Model this carefully.
Does student loan affect a mortgage application?
Yes — lenders count student loan repayments as a regular outgoing when assessing affordability. On a Plan 5 loan at a £30k salary, repayments are about £45/month, reducing mortgage affordability by roughly £8,000-12,000 depending on the lender's multiplier.
Frequently asked questions
Should I voluntarily overpay my student loan?
Usually no — for most people the loan writes off before full repayment, so overpaying just means you paid more than you had to. The exception: if your income is consistently high (£50k+ over a 30-year career), a Plan 2 loan might not write off, and overpaying could save you money. Model this carefully.
Does student loan affect a mortgage application?
Yes — lenders count student loan repayments as a regular outgoing when assessing affordability. On a Plan 5 loan at a £30k salary, repayments are about £45/month, reducing mortgage affordability by roughly £8,000-12,000 depending on the lender's multiplier.