Plan 1 and 2 student loan

cleocla

Hi, I have a plan 1 and 2 student loan. If my salary is 43,000 what would my student repayments be?

Ed-1

cleocla said:

Hi, I have a plan 1 and 2 student loan. If my salary is 43,000 what would my student repayments be?

9% above £19,390.

[Deleted User]

Income: £43,000
Plan 1 Threshold: £19,380
Plan 2 Threshold: £26,575
Difference between P1 and P2: £7,195
Income above P1: £23,620
Income above P2: £16,425

An oversimplified and erroneous way to calculate your loan repayments is using your annual income. Your loan repayments are actually calculated as and when you are paid using the appropriate threshold for the frequency by which you are paid. 

But, as a guide, your repayments would be:

P1: 9% of £7,195 = £647.00
P2:  9% of £16,425 = £1,478
T: £647 + £1,478 = 2,125

Hope this helps.


Disclaimer: not an expert