Student Loan Repayment, which debt is paid first

jrh2254

My daughter has two income contingent loans. This is because she completed her degree under the old loan scheme where the interest rate was 1.5% and then started another course last Sept where the interest rate is 6.6%

So plan1 is at 1.5% with a balance of circa £21,000 and
plan 2 is at 6.6% with a balance of circa £7,000

I want to pay off the loan with an interest rate of 6.6% and leave the one with an interest rate of 1.5%

If I make a voluntary payment at the student loans repayment website which loan does it deduct the voluntary payment from? Its not very clear on the website.
Clearly I want to pay off the 6.6% interest rate loan first!

Many thanks.

John.

bigadaj

Ring them up and find out, though it may well have to be your daughter that does this due to confidentiality rules, it's her finances after all.

Darren2811

If you do it online the payment is divided over the loans that are currently in repayment.

If you call up you can request what loan the balance goes towards.

Hope this helps