11 May 2026, LONDON –

Young adults who invest the same amount of money as a graduate paying back their ‘plan 5’ student loan could end up with over £570k at the end of the repayment period.

The new research from personal finance comparison site, Finder, found that a graduate with a student loan of £50k and a starting salary of £30k, with an annual wage rise of 3.4*%, would pay back almost £105k over 36 years with a ‘plan 5’ student loan. This includes £56k of interest accrued.

In contrast, someone with no debt and the same salary growth (also from £30k), who invested the equivalent student loan payment into the S&P 500 each year, could expect to have around £572k by the end of the same period, if the index kept up its historical 10% annual gain. This is because the total investment of £104.5k would be transformed into around £572k thanks to compound interest.

Even at a lower starting salary, there’s still a significant difference. For example, someone starting their career on £25k, and also experiencing 3.4% annual wage rise, would pay back £95k, including over £82k interest accrued, as opposed to the near £473k they could have after 40 years if they put it in the stock market.

The ‘plan 5’ repayment structure applies to students who began university on or after August 2023. You don’t begin paying the loan back until you earn more than £25,000 a year and the loan is automatically wiped after 40 years. Some students will begin making repayments from April 2026.

While the prospect of earning a similar salary without a degree was once an unlikely prospect, research from the Centre for Economics and Business Research shows that the average lifetime earnings premium between university graduates and higher-level apprentices has narrowed to just 1.8%.

George Sweeney, investing expert at Finder, said:

“While switching offers can be tempting, don’t let a one-off cash incentive blind you to a poor user experience. It’s important to look for a current account that genuinely suits your financial needs.

“Neobanks like Monzo and Starling offer feature-rich apps, perfect for day-to-day budgeting and fee-free spending abroad. Banks rarely reward loyalty – Nationwide being the exception – so if these features sound appealing, it’s worth looking beyond traditional options to digital banks with budgeting tools that can help improve how you manage your money.

“The widespread appeal of digital banks was reflected in Finder’s 2026 Customer Satisfaction Awards, where the 4 top-rated current accounts were digital: first direct, Starling, Revolut and Chase.

“However, if branch support and face-to-face service are more important to you, this should be your priority when choosing a current account. Banking is ultimately a very personal decision so choose the bank that supports your day-to-day finances – rather than just the one waving a shiny reward in your face.”