Should I overpay my student loan?
Last reviewed: ยท Use the calculator to model your own scenario
Start with your likely repayments
Overpaying can reduce interest if it helps you clear the loan, but a lower balance does not necessarily mean a lower lifetime cost. Your plan, future income and time until write-off all affect the result.
Compare the same scenario with and without extra payments. Include the extra payments in the total, then consider whether you may need that money for other purposes. A plan number alone cannot tell you whether overpaying is worthwhile.
Will the extra payment change the outcome?
Start by checking whether the loan is projected to be repaid before its write-off date. Then compare:
- It clears in both scenarios: earlier repayment can reduce interest. Compare the total paid and when each payment leaves your account.
- It is written off in both scenarios: if required deductions remain unchanged, extra payments increase what you pay and reduce the amount written off.
- Only the overpayment scenario clears: compare the full cost of each scenario. Clearing the balance is not, by itself, evidence of a saving.
You can check this using our student loan calculator. Enter your details and look at whether your loan is projected to be cleared or written off.
Compare different income paths
A forecast needs more than a starting balance and salary. Check your repayment start date, remaining term, future interest and threshold assumptions, and the amount and timing of any extra payments.
Try slower pay growth, a career break and faster pay growth. A result that changes substantially between these scenarios is uncertain. Today's salary is not a promise about future earnings.
Check the interest rate
The published Plan 1 rate is 4.1% as of September 2026. Under the Plan 1 interest rule, the rate is the lower of RPI or the Bank of England base rate plus one percentage point. This current rate is not a fixed rate for the remaining life of your loan.
Other plans have different interest rules. Check our rates and sources and the current GOV.UK figures before relying on a projection.
Compare the use of your money
- What does the comparison show after including every extra payment, rather than only the interest avoided?
- Would paying another debt reduce a higher cost, and are there charges or other terms to consider?
- How much accessible cash would remain for unexpected bills or a period without earnings?
- If comparing with saving or investing, have you allowed for tax, fees, access restrictions and uncertain returns?
Extra payments are not refundable
GOV.UK states that voluntary extra repayments cannot be refunded. This differs from refunds that may be available for certain deductions taken through payroll. Check the official extra-repayment guidance before paying.
How to make voluntary repayments
Extra payments are separate from required income-based repayments. The Student Loans Company offers payment through an online account and other methods listed in its payment instructions.
To clear a loan in full, ask SLC for a settlement amount and payment date. If you hold more than one plan, check how the extra payment will be allocated.
Model your own scenario
Use our student loan repayment calculator to compare repayment and write-off under your chosen assumptions. Treat the result as an estimate and review it when your circumstances or the rules change.