How education loans are repaid
This calculator is for private education loans from banks and other lenders, repaid in fixed monthly instalments over a set term. Some lenders let you pause repayments while you study, though interest may still build up.
Government student loans that you repay as a share of your income work differently. For those, use the student loan repayment calculator instead.
Worked example
Borrowing £25,000 at 9% over 10 years costs £316.69 a month, £38,002.73 in total, so £13,002.73 is interest.
Over 5 years the payment rises to £518.96 but the interest falls to £6,137.53. Over 15 years the payment drops to £253.57, but the interest rises to £20,642.00.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Before you borrow
Compare APRs, check whether interest is charged during any study period, and ask about early repayment charges. Paying extra once you're earning can cut the interest; the education loan prepayment calculator shows how much.
Inputs for the education loan repayment calculator
Amount to borrow
The amount you'll owe when repayments start, including any interest added while you studied.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over.
CALCULATOR QUESTIONS
Education loan repayment calculator questions
How is an education loan payment worked out?
Like other fixed-rate loans: a level monthly payment that clears the loan and its interest by the end of the term.
Is this for government student loans?
No. Those are repaid from your income, not in fixed instalments. Use the student loan repayment calculator for them.
Does a longer term cost more?
Yes. In the example, 15 years instead of 10 lowers the payment to £253.57 but adds £7,639.27 of interest.
Can I repay an education loan early?
Usually, though some lenders charge for it. Check your agreement for early repayment charges.