Student Loan Calculator
Income-contingent loans behave like a graduate tax.
Work out Student Loan. Income-contingent loans behave like a graduate tax. Every rate is an input, not an assertion.
Income-contingent payment
60.00
Never cleared — 180,632 written off after 30 years
Income-contingent systems behave more like a graduate tax than a loan. The payment depends on income rather than on the balance, so the headline debt figure has very little to do with what anyone actually pays. When the payment does not cover the interest, the balance grows however long repayment runs — and is then written off at the end. In that situation overpaying is usually a straight loss, because it buys down a debt that was never going to be repaid in full. The rates, thresholds and write-off periods differ by country and by cohort within a country, which is why all of them are inputs here. Check yours against the current official figures rather than any calculator's defaults.
How the Student Loan Calculator works
Repayment on either a fixed schedule or an income-contingent one, with the write-off. When the payment does not cover the interest, the balance grows regardless — and overpaying is usually a straight loss.
Also known as: should i pay off my student loan · income contingent repayment calculator · will my student loan be written off · why is my student loan balance growing
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
How is an income-contingent payment worked out?
A percentage of income above a threshold, regardless of the balance. Nine percent above the threshold is common, which means the headline debt has very little to do with what anyone actually pays.
Should I overpay my student loan?
Only if you will clear it in full. On an income-contingent plan that gets written off, overpaying buys down a debt you were never going to repay — which is a straight loss.
Why does my balance keep growing?
Because the payment does not cover the interest. On low incomes that continues for the whole repayment period, and the entire remaining balance is written off at the end.
Does a student loan affect my credit?
In income-contingent systems it generally does not appear as ordinary debt, though it does reduce take-home pay and lenders count that. The rules differ by country and are worth checking.
When is it worth clearing early?
When the balance is small relative to income, so you would clear it well before the write-off anyway. In that case the interest is a real cost and paying it down early saves money.
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