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

UK student loans (Plan 2) are repaid at 9% of income above £29,385/year (2026/27, frozen until 2029/30) 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 charges no interest. Instead, the debt is indexed each 1 June to the lower of CPI and wage growth (2.8% in 2026). Repayment is automatic via the tax system once repayment income exceeds A$69,528 (2026-27). Since 2025-26 repayments are marginal: 15c per $1 above the threshold, $9,028 plus 17c per $1 above A$129,717, and 10% of total income from A$186,051. There's no time limit — the debt is repaid until cleared or until death.

What US student loan repayment plans are available?

The SAVE plan has ended: a federal court approved its termination on 10 March 2026 and SAVE borrowers are being moved to other plans. For loans taken out before 1 July 2026, Standard, Graduated, Extended and Income-Based Repayment (IBR: 10–15% of discretionary income, forgiveness after 20–25 years) remain, while PAYE and ICR close by 30 June 2028. Loans first disbursed from 1 July 2026 use the Standard/Tiered Standard plan or the new Repayment Assistance Plan (RAP: 1–10% of income, forgiveness after 30 years). Public Service Loan Forgiveness still applies after 10 years of qualifying payments.

🇺🇸 US Federal 6.52% (2026–27)🇬🇧 UK 9% above £29,385🇦🇺 HECS — no interest!🇺🇸 IDR Plans

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.

Quick Answer

Student loan repayment works fundamentally differently by country. US loans require fixed or income-driven payments; UK loans repay 9% of income above a threshold and are written off after 30–40 years; Australia's HECS-HELP charges no interest (only inflation indexation) and is collected automatically through the tax system.

🎓 US federal standard repayment: fixed 10-year plan. Undergraduate Direct Loans first disbursed 1 Jul 2026 – 30 Jun 2027: 6.52% fixed.

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	6.52% (2026–27 undergrad)	Fixed monthly	None	Yes
🇺🇸 US IBR (SAVE has ended)	6.52%	10% of income above 150% of poverty guideline	20 years (25 for pre-2014 borrowers)	No (fed loans)
🇬🇧 UK Plan 2	RPI to RPI+3%, capped at 6% (4.1–6%)	9% above £29,385	30 years	No
🇬🇧 UK Plan 5	RPI only (4.1%)	9% above £25,000	40 years	No
🇦🇺 HECS-HELP	Indexation only (2.8% in 2026)	Via tax system	On death	No

Sources & Methodology

Repayment is modeled separately for each national scheme. Interest rates, income thresholds and forgiveness rules are taken from official government sources and change periodically.

Standards and figures reviewed 2026.

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Cite this page APA · MLA · BibTeX

APA

WorldCalculators.org. (2026, September 25). Student Loan Calculator: US, UK Plan 2/5 & HECS-HELP. https://worldcalculators.org/calculators/student-loan/

MLA

“Student Loan Calculator: US, UK Plan 2/5 & HECS-HELP.” WorldCalculators.org, 25 Sept. 2026, worldcalculators.org/calculators/student-loan/.

BibTeX

@misc{worldcalculators2026calculatorsstudentloan,
  title        = {Student Loan Calculator: US, UK Plan 2/5 & HECS-HELP},
  author       = {{WorldCalculators.org}},
  year         = {2026},
  howpublished = {\url{https://worldcalculators.org/calculators/student-loan/}}
}

Figures change when tax years or guidance change. Cite the date shown and link the page so readers see the current version.