Repaying both Plan 2 and Plan 5 loans

chloechaplin

Hi, I have and am currently paying for my plan 2 loan that I took out a few years ago for my undergrad nursing degree. I have just started a masters degree in midwifery but have been advised by SFE that if I apply for another student loan for my masters, it will count as another undergraduate loan (despite being a masters) because it is a health science and therefore I will be taking out a plan 5 loan and not a postgraduate loan. How will this work in terms of repaying the loans, will I pay for both or will the total I owe be added and I will continue to pay for one? thanks

silvercar

Plan 5 loans won’t go into repayment until April 2026.

When that happens you pay 9% over the lower threshold. The 9% of income between the 2 thresholds goes to the loan with the lower threshold, the remaining repayment goes towards the other loan. Assuming current rules apply, no one knows if repayment formula will be tweaked in the next 2 years.