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

- 9% of the amount you earn over the threshold for plans 1, 2 and 4
- 6% of the amount you earn over the threshold for the Postgraduate Loan

You do not pay anything back if your income is under the threshold .

interest starts being added to your loan from when you get your first base payment.

Reading: Repaying your student loan

## Plan 1

The thresholds are £388 a workweek or £1,682 a calendar month ( before tax and early deductions ) .

exemplar

You ’ re paid monthly and your income changes each month. This month your income was £2,000, which is over the Plan 1 monthly brink of £1,682 .

Your income was £318 over the brink ( £2,000 minus £1,682 ). You will pay back £28 ( 9 % of £318 ) this calendar month .

example

Your annual income is £27,000 and you ’ re paid a even monthly engage. This means that each calendar month your income is £2,250 ( £27,000 divided by 12 ). This is over the Plan 1 monthly doorway of £1,682 .

Your income is £568 over the doorway ( £2,250 subtraction £1,682 ). You will pay back £51 ( 9 % of £568 ) each month .

### Interest on Plan 1

You presently pay concern of 1.5 % on plan 1. You can find out how the matter to is calculated and interest rates for previous years .

## Plan 2

The thresholds are £524 a workweek or £2,274 a calendar month ( before tax and other deductions ). They change on 6 April every year .

example

You ’ re paid weekly and your income changes each week. This workweek your income was £600, which is over the Plan 2 weekly brink of £524 .

Your income was £76 over the doorway ( £600 subtraction £524 ). You will pay back £6 ( 9 % of £76 ) this week .

exercise

Your annual income is £28,800 and you are paid a regular monthly engage. This means that each month your income is £2,400 ( £28,800 divided by 12 ). This is over the Plan 2 monthly threshold of £2,274 .

Your income is £126 over the brink ( £2,400 minus £2,274 ). You will pay back £11 ( 9 % of £126 ) each calendar month .

### Interest on Plan 2

While you ’ re study, interest is 4.5 % .

This is made up of the Retail Price Index ( RPI ) plus up to 3 % .

This pace applies until the 5 April after you finish or leave your naturally, or for the first 4 years of your course if you ’ rhenium studying half-time, unless the RPI changes .

After that, your interest rate depends on your income in the current tax year .

If you ’ re an employee, your income is your taxable pay :

- plus any pension contributions
- minus any benefits you get from your employer that are taxed through payroll (ask your employer if you’re not sure)

If you pay tax using a Self-Assessment tax return, your income is the total income amount on your Self-Assessment form. You ’ ll normally pay tax using a Self-Assessment tax refund if you ’ re freelance .

If you have more than one job in a year, your matter to rate will be based on your combine income from all your jobs .

Your annual income | Interest rate |
---|---|

£27,295 or less | RPI (currently 1.5%) |

£27,296 to £49,130 | RPI (currently 1.5%), plus up to 3% |

Over £49,130 | Usually RPI (currently 1.5%), plus 3% |

You must keep your contact details up to date in your on-line account and give the scholar Loans Company ( SLC ) testify if they ask for it. If you do not, you may be charged the higher interest rate even if your income is lower .

You can find out how the interest is calculated and interest rates for previous years .

## If you have Plan 1 and Plan 2 loans

You pay back 9 % of your income over the Plan 1 brink ( £388 a workweek or £1,682 a calendar month ) .

If your income is under the Plan 2 doorsill ( £524 a week or £2,274 a calendar month ), your repayments only go towards your design 1 lend .

If your income is over the Plan 2 threshold, your repayments go towards both your loans .

## Plan 4

The thresholds are £487 a workweek or £2,114 a month ( before tax and other deductions ) .

example

You ’ re paid monthly and your income changes each calendar month. This month your income was £2,250, which is over the Plan 4 monthly threshold of £2,114 .

Your income was £136 over the threshold ( £2,250 minus £2,114 ). You will pay back £12 ( 9 % of £136 ) this calendar month .

exercise

Your annual income is £33,000 and you ’ re paid a even monthly wage. This means that each month your income is £2,750 ( £33,000 divided by 12 ). This is over the Plan 4 monthly doorway of £2,114 .

Your income is £636 over the threshold ( £2,750 minus £2,114 ). You will pay spinal column £57 ( 9 % of £636 ) each calendar month .

### Interest on Plan 4

You presently pay matter to of 1.5 % on design 4. You can find out how the interest is calculated and interest rates for former years .

## If you have a Plan 4 loan and a Plan 1 loan

You pay back 9 % of your income over the Plan 1 threshold ( £388 a workweek or £1,682 a calendar month ) .

If your income is under the Plan 4 threshold ( £487 a week or £2,114 a month ), your repayments only go towards your plan 1 lend .

If your income is over the Plan 4 doorway, your repayments go towards both your loans .

case

You have a plan 4 loan and a Plan 1 loanword.

Your annual income is £28,800 and you are paid a regular monthly wage. This means that each calendar month your income is £2,400 ( £28,800 divided by 12 ). This is over the Plan 4 monthly threshold of £2,114 and the Plan 1 doorway of £1,682 .

Your income is £718 over the Plan 1 brink ( £2,400 minus £1,682 ) which is the lowest of both plans .

You will pay back £64 ( 9 % of £718 ) and repayments will go towards both plans .

## If you have a Plan 4 loan and a Plan 2 loan

You pay back 9 % of your income over the Plan 4 brink ( £487 a week or £2,114 a calendar month ) .

If your income is under the Plan 2 threshold ( £524 a week or £2,274 a month ), your repayments lone go towards your plan 4 lend .

If your income is over the Plan 2 threshold, your repayments go towards both your loans .

model

You have a plan 4 lend and a Plan 2 loan .

Your annual income is £28,800 and you are paid a regular monthly wage. This means that each calendar month your income is £2,400 ( £28,800 divided by 12 ). This is over the Plan 4 monthly threshold of £2,114 and the Plan 2 threshold of £2,274 .

Your income is £286 over the Plan 4 doorsill ( £2,400 subtraction £2,114 ) which is the lowest of both plans .

You will pay back £25 ( 9 % of £286 ) and repayments will go towards both plans .

## Postgraduate Loan

The thresholds are £403 a workweek or £1,750 a month ( before tax and other deductions ) .

example

You ’ re paid weekly and your income changes each week. This week your income was £600, which is over the Postgraduate Loan hebdomadally threshold of £403 .

Your income was £197 over the brink ( £600 minus £403 ). You will pay back £11 ( 6 % of £197 ) this week .

case

Your annual income is £28,800 and you are paid a unconstipated monthly engage. This means that each month your income is £2,400 ( £28,800 divided by 12 ). This is over the Postgraduate Loan monthly doorsill of £1,750 .

Your income is £650 over the threshold ( £2,400 minus £1,750 ). You will pay back £39 ( 6 % of £650 ) each calendar month .

### Interest on Postgraduate Loan

You presently pay interest of 4.5 % on Postgraduate Loans .

The interest is normally the retail Price Index ( RPI ) plus 3 % .

You can find out how the pastime is calculated and interest rates for previous years .

## If you have a Postgraduate Loan and a Plan 1, Plan 2 or Plan 4 loan

You pay back 6 % of your income over the Postgraduate Loan doorway ( £403 a week or £1,750 a calendar month ). In addition, you ’ ll pay back 9 % of your income over the Plan 1, Plan 2 or Plan 4 doorsill .

example

You have a Postgraduate Loan and a Plan 2 loanword .

Your annual income is £28,800 and you are paid a regular monthly wage. This means that each calendar month your income is £2,400 ( £28,800 divided by 12 ). This is over the Postgraduate Loan monthly doorway of £1,750 and the Plan 2 doorsill of £2,274 .

Your income is £650 over the Postgraduate Loan doorway ( £2,400 subtraction £1,750 ) and £126 over the Plan 2 doorway ( £2,400 subtraction £2,274 ) .

You will pay back £39 ( 6 % of £650 ) to your Postgraduate Loan and £11 ( 9 % of £126 ) to your Plan 2 loan. thus your entire monthly repayment will be £50 .

exercise

You have a Postgraduate Loan and a Plan 1 lend .

Your annual income is £28,800 and you are paid a regular monthly engage. This means that each month your income is £2,400 ( £28,800 divided by 12 ). This is over the Postgraduate Loan monthly threshold of £1,750 and the Plan 1 doorway of £1,682 .

Your income is £650 over the Postgraduate Loan doorsill ( £2,400 minus £1,750 ) and £718 over the Plan 1 threshold ( £2,400 subtraction £1,682 ) .

You will pay back £39 ( 6 % of £650 ) to your Postgraduate Loan and £64 ( 9 % of £718 ) to your Plan 1 loanword. so your sum monthly refund will be £103 .

## If your income changes during the year

You can ask for a refund if you make repayments but your total annual income ( from 6 April to 5 April the following year ) is less than :

- £20,195 a year for Plan 1
- £27,295 a year for Plan 2
- £25,375 a year for Plan 4
- £21,000 for Postgraduate Loans

## If you have 2 or more jobs

If you ’ ra employed, your repayments will be taken out of your wage. The repayments will be from the jobs where you earn over the minimum total, not your compound income .

example

You have a plan 1 loanword .

You have 2 jobs, both paying you a even monthly wage. Before tax and other deductions, you earn £1,000 a month from one job and £800 a calendar month for the early .

You will not have to make repayments because neither wage is above the £1,682 a month brink .

example

You have a plan 2 loan.

You have 2 jobs, both paying you a unconstipated monthly wage. Before tax and other deductions, you earn £2,300 a calendar month from one job and £500 a month for the other .

You will only make repayments on the income from the job that pays you £2,300 a month because it ’ second above the £2,274 threshold .

### If you need to send a Self Assessment tax return

HM Revenue and Customs ( HMRC ) will work out how much you repay from your tax return. Your repayments are based on your income for the wholly year. If you ’ ve already made repayments from a wage, HMRC will deduct them from the sum you have to repay .