Student loan repayments HELP Plan 1 and Plan 2 loan

jessicasteeleeee

Hello, 
I am looking for some advice regarding my student loan. I have recently finished a three year degree in Northern Ireland and currently have 21k of student debt which is Plan 1 and I am now moving to Leeds to do a PGCE secondary teacher training degree. I am going to be receiving a 26k bursary and I am debating whether or not to take the 9k fees out as a loan including the maintenance loan or whether to not take any loans and self finance my 9k fees out of my 26k bursary to reduce my student debt.

I know Martin Lewis says take all you are given as you will never pay it all back and not to pay off large chunks of it yourself but he is speaking about English and Welsh students with 50k+ of debt. I will have both a Plan 1 student debt of 21k plus a Plan 2 student debt of 12k so a total of 33k. I would love to be able to use my full 26k bursary to live off next year but also save for a house deposit and a year of travelling. Can anyone advise me on whether I am better to take the 9k fee loan out and maintenance loan of approx 3k (N.I) with the expectation that I will never pay my full loan back and therefore paying 9k out of my bursary could be throwing away money or am I better to not take out the extra debt, pay it out of my bursary and not have the extra savings incase I do repay my full student debt and the interest. I am finding the mixture of a Northern Irish and English student loan very confusing as I do not know how to work out if I will repay my full student loan or not given that the calculator is only for Plan 2. I expect to earn on average 24-34k salary throughout my life.

Additionally, would anyone be able to tell me when the 25 years (Plan 1) or 30 years (Plan 2) until your loan is wiped begins? Does it begin from the April after you graduate or once you start earning above the threshold. For example, it is currently the year I should start repaying my undergraduate loan but I am not earning enough, if I do my PGCE next year and then go travelling will I only have to repay my student loan for 23 years instead of 25? Or would the 25 years only begin when I start earning above the threshold. 

Sorry for the long query, I hope someone can help

Jessica 

Ed-1

jessicasteeleeee said:

Hello, 
I am looking for some advice regarding my student loan. I have recently finished a three year degree in Northern Ireland and currently have 21k of student debt which is Plan 1 and I am now moving to Leeds to do a PGCE secondary teacher training degree. I am going to be receiving a 26k bursary and I am debating whether or not to take the 9k fees out as a loan including the maintenance loan or whether to not take any loans and self finance my 9k fees out of my 26k bursary to reduce my student debt.

I know Martin Lewis says take all you are given as you will never pay it all back and not to pay off large chunks of it yourself but he is speaking about English and Welsh students with 50k+ of debt. I will have both a Plan 1 student debt of 21k plus a Plan 2 student debt of 12k so a total of 33k. I would love to be able to use my full 26k bursary to live off next year but also save for a house deposit and a year of travelling. Can anyone advise me on whether I am better to take the 9k fee loan out and maintenance loan of approx 3k (N.I) with the expectation that I will never pay my full loan back and therefore paying 9k out of my bursary could be throwing away money or am I better to not take out the extra debt, pay it out of my bursary and not have the extra savings incase I do repay my full student debt and the interest. I am finding the mixture of a Northern Irish and English student loan very confusing as I do not know how to work out if I will repay my full student loan or not given that the calculator is only for Plan 2. I expect to earn on average 24-34k salary throughout my life.

Additionally, would anyone be able to tell me when the 25 years (Plan 1) or 30 years (Plan 2) until your loan is wiped begins? Does it begin from the April after you graduate or once you start earning above the threshold. For example, it is currently the year I should start repaying my undergraduate loan but I am not earning enough, if I do my PGCE next year and then go travelling will I only have to repay my student loan for 23 years instead of 25? Or would the 25 years only begin when I start earning above the threshold. 

Sorry for the long query, I hope someone can help

Jessica 

https://www.whatdotheyknow.com/request/230088/response/579884/attach/4/Annex 2 Submission Dual loan repayments.pdf

Hope the above helps you make your mind up (the £15,000 and £21,000 figures are now £19,390 and £26,575).

The Plan 1 loan is written off 25 years after the 6th April following the completion of your first course. The Plan 2 loan gets written off 30 years after 6th April following the completion of your PGCE.
Repayments are taken above the Plan 1 threshold for as long as you've got a Plan 1 balance. Repayments are applied first to your Plan 1 loan if you earn up to the Plan 2 threshold. If you earn above the Plan 2 threshold your repayments are spread across your Plan 1 and Plan 2 loans.

silvercar

" I expect to earn on average 24-34k salary throughout my life."
That alone would make me take as much loan as I could get. 
Though a few years of inflation and you may find that teachers salaries increase.
I thought the write offs were x years after the loans become repayable ie the April after graduation.

Curtis2015

Hi, my wife took out a Student Loan in 1993. She has never earned anywhere near the amount required to pay it back. A debt recovery company are now asking she pays it back. any advice ?

ElaineB3

I have received a small inheritance from my grandmother. Will this be taken automatically to pay my student loan or can I put it in a Lifetime ISA?

silvercar

ElaineB3 said:

I have received a small inheritance from my grandmother. Will this be taken automatically to pay my student loan or can I put it in a Lifetime ISA?

Student loan repayments are taken from income not inheritance, spend it on whatever you want.