Write-off date of multiple plan 1 loans

Hi - I have quite a specific question about write-off of my plan 1 loans. I have 2 separate loans both plan 1

I attended university in 2006, left in 2008 with that loan going into repayment April 2009. Under normal circumstances, this loan would be written off April 2034. I then went back to university on a different course and look out new loans 2011-2014.

I'm now in a good job and am quite marginal on repayment and am planning both some maternity leave and additional pension payments (salary sacrifice) that could tip the balance. I'm assuming the whole lot won't be written-off in 2034 but, if my payments since 2015 have gone against the second loan, I'd be close to being free from student loan around that time assuming the first portion is then written off. If things don't work like that, then I'll likely have payments until 2040.

I'm struggling to find somewhere to read up on whether these loans are treated separately, how payments are allocated between them and when each portion will be written off. Any pointers appreciated!

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  • silvercar
    silvercar Posts: 46,765
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    edited 16 May 2022 at 8:11AM
    Assuming you loans are itemised separately, I’ve found this about write offs:

     If you started studying in the 2005/06 academic year or earlier, your Plan 1 Student Loan will be written off when you turn 65. If you started uni in the 2006/07 academic year or later, your Plan 1 Student Loan will be written off after 25 years.”

    (From: 
    https://www.savethestudent.org/student-finance/student-loan-repayments.html#plan1)

    So a loan that goes into repayment in 2009 would be written off in 2034.

    I doubt that your repayments could all be credited to the new loan as that wouldn’t be balanced. It makes no sense to allow repayments to be credited to the loan that isn’t written off first, as that makes the first loan a grant rather than a loan. 

    I’m struggling to find information online, the only clue I can see is that for those with a plan 1 and plan 2 loan, the repayments do go towards both loans.

    A question: are the loans listed separately on your statement? Or are they recorded as one plan 1 loan? I can't find anything online that talks of 2 plan 1 loans, I am wondering if it is all a single loan.

    @Ed-1 is the expert on these sort of questions, hopefully he will notice your question.

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  • Ed-1
    Ed-1 Posts: 3,851
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    Hi - I have quite a specific question about write-off of my plan 1 loans. I have 2 separate loans both plan 1

    I attended university in 2006, left in 2008 with that loan going into repayment April 2009. Under normal circumstances, this loan would be written off April 2034. I then went back to university on a different course and look out new loans 2011-2014.

    I'm now in a good job and am quite marginal on repayment and am planning both some maternity leave and additional pension payments (salary sacrifice) that could tip the balance. I'm assuming the whole lot won't be written-off in 2034 but, if my payments since 2015 have gone against the second loan, I'd be close to being free from student loan around that time assuming the first portion is then written off. If things don't work like that, then I'll likely have payments until 2040.

    I'm struggling to find somewhere to read up on whether these loans are treated separately, how payments are allocated between them and when each portion will be written off. Any pointers appreciated!
    https://www.whatdotheyknow.com/request/icr_student_loan_cancellation_re_2#incoming-569571
  • alibean121
    alibean121 Posts: 260
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    Fantastic thanks - I’ll get in touch with them and see if they can tell me how much is in each balance.
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