I know student loans are not the most exciting of topics, repaying money which you probably wish you didn’t have too. Previously this has been a set sum every month which applies to every previous student, no matter what age or job role. But times are changing…
The new two plan scheme
As of April 2016 there will be a new two plan student loan repayment scheme in place. Here’s the need to know for those of you who are repaying student loans.
Plan one involves English, Welsh, Scottish and Irish students who started on or after September 2012. The repayment starts when you earn over £17,335.00 (subject to change every April). The loan amount is paid back at nine percent over your yearly income, so hardly anything noticeable! So for example if you earn over £24,000 per annum you will be paying back £49 per month.
Plan two involves English and welsh students who started on or after September 2012. The repayment is slightly different to plan one, as this one starts when you earn over £21,000. As like plan one this is paid back at nine percent of your wages . Again for example if you earn £27,000 per annum you will pay back £72 per month.
So there you have it, all the information you need. Piece of cake! Whether it’s plan one or plan two the repayments at nine percent a year will hardly be noticeable. Remember if you want to get a refund on either student loan plans you will need to keep your P60’s and payslips!