Repayment Threshold 2018/19

Ed-1

With RPI for March in at 3.1%, the repayment threshold (for plan 1 loans) will rise to £18,330 from April 2018 (17,775x1.031 rounded up).

The repayment threshold (for plan 2 loans) will rise to £25,000 (as a result of policy changes announced at Conservative Party Conference 2017).

From 1st September 2017:

Interest rates for plan 1 loans will be 1.25% (as a result of the base rate being 0.25%. If base rate rises before 1st September 2018 the rate will be capped at 3.1%).

Interest rates for plan 2 loans will range from 3.1% to 6.1% depending on whether you are studying or not (including the period until April after finishing) and what you earn if you are in repayment.

Interest rates for postgraduate loans will be 6.1%.

Apathy

Just to check if you repay more over the year for student loans pre 2012 can you ask for a refund? An example is if you paid £410 student loan on a 22,000 for the year earnings but was suppose to pay £380.25? E.g is the job is commision on top of salary so some months the repayment is well over what is should be compared to a static salary with no bonuses so sometimes they assume monthly im on a much higher yearly salary e.g £1500 basic plus £600 bonus 1 month with no bonus the next etc . I've been told by student finace because i earnt over the £17,775 (2016/2017 threshold) so they wont repay me anything back over even though i thought they could only make me repay anything over £17,775 at 9% not even more?

Thanks

Ed-1

Apathy wrote: »

Just to check if you repay more over the year for student loans pre 2012 can you ask for a refund? An example is if you paid £410 student loan on a 22,000 for the year earnings but was suppose to pay £380.25? E.g is the job is commision on top of salary so some months the repayment is well over what is should be compared to a static salary with no bonuses so sometimes they assume monthly im on a much higher yearly salary e.g £1500 basic plus £600 bonus 1 month with no bonus the next etc . I've been told by student finace because i earnt over the £17,775 (2016/2017 threshold) so they wont repay me anything back over even though i thought they could only make me repay anything over £17,775 at 9% not even more?

Thanks

What the repayment 'should be' is what you earn over the pay-period threshold. If your overall earnings are over the annual threshold then you can't get a refund if you earned a lot for example over the monthly threshold in particular months as you aren't due one. What you are obliged to pay is not what you earn over the annual threshold; it's what you earn over the pay-period thresholds over the year. However if your annual income is below the annual threshold you can get a refund of anything paid.

lindsey1980

i wasnt told when i got my student loan that there was interest to be paid on this and when i make my monely payments this only covers they yearly intersts how am i going to even pay back the loan

silvercar

lindsey1980 wrote: »

i wasnt told when i got my student loan that there was interest to be paid on this and when i make my monely payments this only covers they yearly intersts how am i going to even pay back the loan

Don't worry about it, if you never earn enough to repay the loan it eventually gets written off.