Student Loans

Alex_Talbot

Hi all

As I took my student loan out after September 2012 I have been put on to what the student loan company calls payment plan 2, which means that anything over £21,000 will be charged at 9%. Importantly this also gets whipped after 30 years from the start of your loan repayment. I have two questions regarding this.

1. If in my first form of employment I initially earn +£21k in say the first month/year but then my salary falls to bellow £21k does that count as starting the 30 year period, even though I will quickly stop paying?

2. if i was to start paying back after earning +£21k but then fell bellow this threshold after a short while, would I then stop getting charged completely?

thanks so much

CLAPTON

Alex_Talbot wrote: »

Hi all

As I took my student loan out after September 2012 I have been put on to what the student loan company calls payment plan 2, which means that anything over £21,000 will be charged at 9%. Importantly this also gets whipped after 30 years from the start of your loan repayment. I have two questions regarding this.

1. If in my first form of employment I initially earn +£21k in say the first month/year but then my salary falls to bellow £21k does that count as starting the 30 year period, even though I will quickly stop paying?

2. if i was to start paying back after earning +£21k but then fell bellow this threshold after a short while, would I then stop getting charged completely?

thanks so much

what a pessimistic post

you actually get a student loan deduction if your monthly salary is more than
21000/12 based on 9% of the excess

the 30 years is from when you become eligible for student loan repayment