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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%

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