Old loan and new loan

Ed-1

silvercar said:

SwiftS said:

Ed-1 said:

kaMelo said:

I'm sure I read somewhere the payments were shared but happy to be corrected, I must be thinking of something else.

The regulations are conclusive:

Thanks for the responses. Really helpful. It was not easy to find the answer when I searched. Students completing their degrees on plan 2 and now having to fund pgce on plan 5 are going to be paying student loans for pretty
much their whole career. My daughter graduated in June 2022, but wanted to get some experience in a school first before applying to do PGCE (to make sure it was the right choice for her etc). This has been a potentially costly mistake as she could have been doing PGCE this year on plan 2 🥺.
So if I have this right…
plan 2 payments 2023-2053 (not paying anything at the minute because salaries in education are so abysmal)
If she starts pgce in 2024, then plan 5 payments will start April 2026 and continue to 2066. She’ll be 65.
If she starts work as a teacher in September 2025, there will be 6 months or so of just paying plan 2.
April 2026 plan 5 kicks in as well, but she will only be making a tiny contribution to this (9% of salary between £25-£27k). Bulk of repayment goes to plan 2 (9% over £27k). 

This continues for 27 years (or so, my
maths is muddled now!) 
By April 2053 the remainder of plan 2 is written off, but now the payments shift to plan 5 only. Despite paying both loans for 27 years she will have only made a tiny dent in the plan 5 loan. 

She now pays 9% of her salary over £25k for the next 13 years until the age of 65 in 2066.
I suspect students will turn to routes other than PGCE. Alternatives in our area are a bit limited though.
Depressing options for young people 🥺

Your calculation looks right, other than the last sentence should be the next 33 not 13 years.

Of course a few years of high inflation will lead to wage rises, this in turn could lead to more students paying off their loan sooner.

They mean 13 years from when Plan 2 gets wiped.