Interest, overpaying & write-off
Lesson 9 of 15 in our free Student Finance guide: a 5-minute money game with the key points below.
Shown for England. Some rules here are different in Scotland, Wales and Northern Ireland: the lesson shows your nation's version.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Student Finance is free for everyone.
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Questions you'll answer
A £45,000 balance with interest at 4.1% (the rate on Plans 1, 4 and 5 from September 2026) for one year. Roughly how much interest is added?
Who is MOST likely to actually benefit from overpaying their student loan?
Quick facts
- Myth: “Your monthly repayment goes up when interest is added.” — Repayments depend on income only. Interest affects the balance and how long you pay.
- Fact: “Plan 2 loans are written off 30 years after you're due to start repaying.” — England's Plan 5 is 40 years.
- Myth: “You can get overpayments refunded easily any time.” — Voluntary overpayments generally aren't refundable. Think before you send.