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Repaying Student Loans

Repaying Student Loans

General

Author: Erin Snyman

There are no changes to the Student loan and or Postgraduate loan deductions process as a result of COVID-19, however it is important to remember that you will only make repayments to your student loan once you are earning over the repayment threshold.

Each plan has a different threshold for your weekly or monthly income. You repay:

  • 9% of the amount you earn over the threshold for Plan 1 and 2
  • 6% of the amount you earn over the threshold for the Postgraduate Loan

The current thresholds for the 2020/2021 tax year are:

  • Plan 1 – £19,390 annually (£1,615.83 a month or £372.88 a week)
  • Plan 2 – £26,575 annually (£2,214.58 a month or £511.05 a week)
  • Postgraduate loans – £21,000 annually (£1,750 a month or £403.84 a week)

If the current situation with COVID-19 means that your employment details have changed you will need to notify the Student Loans Company. You may get a higher interest rate if you do not update your details. You need to update your details if you:

  • leave the UK for more than 3 months
  • start a new job or become self-employed
  • stop working
  • get a letter or email from the Student Loans Company asking you to update your employment details

If your income has been reduced due to the impact of COVID-19 and your annual earnings for the tax year fall below the threshold you can ask for a refund. You will need to call the Student Loans Company and quote your customer reference number. Alternatively, you can write to the Student Loans Company.

Details for the Student Loans Company

Telephone: 0300 100 0611 (England, Northern Ireland or Scotland)
Telephone: +44 (0)141 243 3660 (outside the UK)
Monday to Friday, 9am to 5.30pm

Telephone: 0300 100 0370 (Wales)
Monday to Friday, 9am to 5.30pm (not open on bank holidays)

The Student Loans Company
100 Bothwell Street
Glasgow
G2 7JD

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