Student Loan Company Making Me Pay Plan 1 First.

Dural123

First time posting on this Forum. I feel this has to be brought to peoples attention as it feels like it should be illegal.

I have an old student debt from 2007 of around 5k. I've paid some of this off, although SLC have stopped sending me statements so I don't know exactly how much is left. This is obviously plan 1 repayment.

I returned to university in 2013 and have recently graduated. I think my debt is around £35k but I have never received a statement breaking down what I owe or even a total. This is Plan 2 repayment.

Since graduating I have started a business and I'm the Director of my limited company. I'm paying my self a wage but this is below the threshold for student loan repayments. HMRC sent me a letter telling me that as an employer I have a duty to inform them if my employees have a student debt and I must make the deductions. Thats all very well and good as my wage is below the threshold. At the end of the year I'll calculate my earnings, which includes dividends, so my repayment amount can be calculated. Thats all fine I'll pay what is due once my end of year accounts are completed.

My grievance is that they are forcing me to pay off plan 1 first, the plan with considerably lower interest. The knock on effect of this is that I must clear 5k before I can start paying off plan 2. Considering that 3% of 35k is over £1000 my plan 2 debt could spiral before I've paid off plan 1. Is this legal or just incredibly unfair? This will keep me in debt until the debt is wiped in 30 years, which is probably the intention of student loans in the first place.

Is there a way of paying off plan 2 first? Any help / advise would be greatly appreciated