Student loans on two different schemes - how are deductions calculated?

epsilonjon

Hi,

I took out a student loan in 2008. Unfortunatey I had to leave university due to illness in 2010 before completing my course. I returned to university in 2013 but my student loan was under the new system. Does anyone know how deductions will be calculated after my graduation? I am concerned that I will have deductions taken twice - once for the first loan and once for the second.

Thank you.

Ed-1

epsilonjon wrote: »

Hi,

I took out a student loan in 2008. Unfortunatey I had to leave university due to illness in 2010 before completing my course. I returned to university in 2013 but my student loan was under the new system. Does anyone know how deductions will be calculated after my graduation? I am concerned that I will have deductions taken twice - once for the first loan and once for the second.

Thank you.

If you search the forum, this question has come up several times before.

See the bottom of this page: http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678490&_dad=portal&_schema=PORTAL

At the moment, repayments from income above the plan 1 threshold (which increases on 6th April every year) up to the plan 2 threshold (frozen at £21,000) go towards the plan 1 (pre-2012) loan. Repayments from income above the plan 2 threshold go towards the plan 2 loan.

As the plan 2 threshold is frozen at £21,000, the plan 1 threshold may in the coming years catch up to it and then it's likely the two thresholds would be merged into a single threshold. What would happen then is unclear at the moment. It may be that they decide that all repayments above the threshold would first go to the plan 2 loan as it has higher interest than the plan 1 loan.

epsilonjon

Thank you for your information.

P.S. Apologies I did do a quick search but only found one relevant post from 2011. I obviously didn't search hard enough :embarasse