Student loan recovery
Written by Ray Coman
Student loan is due to be repaid at a fixed rate on income above the thresholds state below. On employment earnings the repaymemt is collected via PAYE. For other types of income, such as rental and self-employment profits, the repayment is due via self-assessment. income from all sources are pooled and compared to the threshold in caluclating liability.
Plan 1 applies to loans taken out before 1st September 2012; plan 2 to loans after that date.
|
Rate or threshold
|
2020-21 | 2019-20 |
| Income threshold for Plan 1 | £19,390 per year | £18,935 per year |
| £1,615.83 per month | £1,577.91 per month | |
| £372.88 per week | £364.13 per week | |
| Income threshold for Plan 2 | £26,575 per year | £25,725 per year |
| £2,214.58 per month | £2,143.75 per month | |
| £511.05 per week | £494.71 per week | |
| Student loan deductions | 9% | 9% |
| Income threshold for Postgraduate loan | £21,000 per year £1,750.00 per month £403.84 per week |
£21,000 per year £1,750.00 per month £403.84 per week |
| Postgraduate loan deductions | 6% | 6% |
