How is a UK student loan different from a US student loan?

UK student loans (Plan 2) are repaid at 9% of income above £27,295/year and are written off after 30 years regardless of remaining balance. US standard loans require fixed monthly payments regardless of income. UK loans don't affect credit scores and can't be chased by debt collectors — they function more like an income-contingent graduate tax.

How does Australia's HECS-HELP work?

Australia's HECS-HELP is unique globally — there is no interest charged. Instead, the debt is indexed to CPI (inflation) each year. Repayment is automatic via the tax system once income exceeds $51,550 AUD (2024-25 threshold), with repayment rates rising from 1–10% of income depending on earnings. There's no time limit — the debt is repaid until cleared or until death.

What US student loan repayment plans are available?

US federal borrowers have multiple plans: Standard (10-year fixed), Graduated (payments rise every 2 years), Extended (up to 25 years), and Income-Driven Repayment (IDR) plans including SAVE, PAYE, IBR, and ICR. IDR plans cap payments at 5–10% of discretionary income and forgive remaining balances after 20–25 years (or 10 years for Public Service Loan Forgiveness).

Student Loan Calculator — US Federal, UK Plan 2/5, Australia HECS-HELP

Student Loan Calculator

Student loan systems are completely different around the world. Australia charges no interest. The UK ties repayments to income. The US offers standard and income-driven plans. Choose your system for an accurate calculation.

🎓 US federal standard repayment: fixed 10-year plan. Interest rate (2024): ~6.5% for undergrad direct loans.

Loan Balance ($)

Annual Gross Income ($)

Interest Rate (% p.a.)

Repayment Term (Years)

Student Loan Systems Compared

Country	Rate	Repayment Type	Forgiveness	Credit Score?
🇺🇸 US Standard	~6.5%	Fixed monthly	None	Yes
🇺🇸 US IDR (SAVE)	~6.5%	5% discretionary income	20–25 years	No (fed loans)
🇬🇧 UK Plan 2	RPI+3%	9% above £27,295	30 years	No
🇬🇧 UK Plan 5	RPI+3%	9% above £25,000	40 years	No
🇦🇺 HECS-HELP	CPI only (~4.7%)	Via tax system	On death	No

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