Student Loan under both systems?

[Deleted User]

Hi,

My girlfriend started her degree in 2011 under the old student loan system. In 2014 she completed that degree and enrolled for her PGCE for which she pays the new £9000 a year tuition fees.

With both having different repayment thresholds and different interest rates can anyone tell me how this will be worked out and repayed?

Obviously in an ideal world she would like her repayments to go towards the loan under the second system first as that has the highest interest rate, but I get the feeling it will not work like that.

Any help much apreciated, Thanks.

Pixie5740

Has she tried asking SLC?

I had pre-1998 mortgage style student loans and an income contingent loan taken out after 1998 and I had to repay them simultaneously. I'm not sure what the case is if they're both income contingent though.

delaguardia

[quote=[Deleted User];discussion/5222729]
Obviously in an ideal world she would like her repayments to go towards the loan under the second system first as that has the highest interest rate, but I get the feeling it will not work like that. [/QUOTE]

I came to the forums to try to find an answer to this exact question! I'm in this situation too. I look forward to any information.

And additionally, if jakehill is correct and there is no option to pay toward the higher interest loan amount first, what is the feasibility of a bank loan instead of a student loan? Would a bank be likely to consider a providing a loan in this situation ?

Ed-1

[quote=[Deleted User];discussion/5222729]Hi,

My girlfriend started her degree in 2011 under the old student loan system. In 2014 she completed that degree and enrolled for her PGCE for which she pays the new £9000 a year tuition fees.

With both having different repayment thresholds and different interest rates can anyone tell me how this will be worked out and repayed?

Obviously in an ideal world she would like her repayments to go towards the loan under the second system first as that has the highest interest rate, but I get the feeling it will not work like that.

Any help much apreciated, Thanks.[/QUOTE]

See the bottom of this page "I have a plan 1 and a plan 2 loan, how do my repayments work?": http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678490&_dad=portal&_schema=PORTAL

Essentially repayments based on income between the 2 repayment thresholds (£17335 to £21000) goes towards the pre-2012 loan and repayments above £21000 go towards the post-2012 loan.

The pre-2012 loan has a write-off date of 25 years after the April the course finished. The post-2012 loan has a write-off date of 30 years after that course finished.

Also see this for how they decided this would happen: https://www.whatdotheyknow.com/request/230088/response/579884/attach/4/Annex%202%20Submission%20Dual%20loan%20repayments.pdf

delaguardia

Oh and one more question if I may - will I be able to use the early repayment option to pay additional payments toward/pay off the total of the post 2012 loan and leave the pre-2012 loan to come off salary ongoing?

Ed-1

delaguardia wrote: »

Oh and one more question if I may - will I be able to use the early repayment option to pay additional payments toward/pay off the total of the post 2012 loan and leave the pre-2012 loan to come off salary ongoing?

Read above. Early repayments are permitted on both systems (though why you'd want to repay the pre-2012 early is questionable).

Repayments for your pre-2012 loan stop being 9% of income above £17335 and start being 9% of your income above £17335 but below £21000 (so they are capped at 9% of the difference between the thresholds).

Repayments for your post-2012 loan are 9% of income over £21000.