Repaying Type 1 and type 4 loans

joshimoto

Hello, I have student loan debt on both type 1 and Type 4 loans, coming from degrees while I was studying in England and latterly Scotland. I've been paying back since 2018 (less than the interest accrued each month of course).

My questions is, how does repayment work when you have multiple types of student loan to repay? Is one paid off first and then the next, or is there some calculation done to combine payments across both concurrently? Thanks

_Dolly_Rocker_

I'm not entirely sure how they calculate it but the total amount you pay monthly does get split between both plan types.

Only way to know would be to have a look at a statement.

Ed-1

https://forums.moneysavingexpert.com/discussion/6654229/repaying-type-1-and-type-4-loans

Repayments on the plan with the lower repayment threshold are capped on income up to the plan with the higher threshold.

The original Ministerial decision for how this would work across plan 1 and plan 2 is here:

https://www.whatdotheyknow.com/request/230088/response/579884/attach/4/Annex%202%20Submission%20Dual%20loan%20repayments.pdf

The same method applies to other plan types.