How prepayment works
The calculator keeps your normal monthly payment the same and adds your overpayments, so the loan is paid off sooner. It works month by month, charging interest at one twelfth of the annual rate on what you still owe.
This is for private education loans repaid in fixed instalments. Government student loans repaid as a share of your income work differently, and overpaying them may not save money if the balance would be written off; use the student loan repayment calculator for those.
Worked example
On £20,000 at 9% with 8 years left, the normal payment is £293.00 a month. Paying £100 a month extra saves £2,842.58 in interest and clears the loan 2 years 7 months sooner.
Paying £200 a month extra instead saves £4,192.01 and 3 years 11 months. A one-off £3,000 lump sum now saves £2,729.72 and 1 year 7 months.
Before you prepay
Build some savings first, and check whether your lender charges for prepayment. If you have debts at a higher rate, paying those off first usually saves more.
Inputs for the education loan prepayment calculator
Education loan balance
The amount left to repay on your education loan.
Interest rate (per year)
Your current interest rate.
Time left to repay
How many years are left on the loan.
Extra each month
The amount you'll pay on top of your normal payment each month. Enter 0 for none.
One-off lump sum now
A single overpayment made now. Enter 0 for none.
CALCULATOR QUESTIONS
Education loan prepayment calculator questions
Can I prepay an education loan?
Most private education loans allow it, sometimes with a charge. Check your agreement.
How much would £100 a month extra save?
On £20,000 at 9% with 8 years left, £2,842.58 and 2 years 7 months.
Should I overpay a government student loan?
Not necessarily. They're repaid from income and may be written off. Use the student loan repayment calculator to check.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.