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Student finance UK repayment dates and info

The student loan remains one of the only ways most people can afford to go to university but it leaves students in debt when they finish their studies. We’re not going to discuss whether that’s the sort of motivating factor that pushes graduates onto bigger and better careers or a millstone around their necks (that’s up to the individual). Instead we’ll just bring you the facts including student finance UK repayment dates and information.
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Repaying your student loan

The repayment terms are dependent on when you took out the Student Loan from the Student Loan Company. Thankfully there are only two possible plans you can be on. Anyone who took out their loan before 1 September 2012 in England and Wales is grouped within Plan 1. All students in Northern Ireland and Scotland regardless of when they took their loan out are within this plan.

Plan 1

Plan 1 students only have to start repaying when they earn £17,335 per year or more. This amount changes from year to year so make sure you keep up to date by checking gov.uk/repaying-your-student-loan from time to time.

Plan 2

Plan 2 students are those who took out the loan after 1 September 2012. These guys only begin to make the repayments when they earn more than £21,000 per annum.

How repayments are made

The method by which the Student Loan Company reclaim the loan depends on whether you’re employed or self-employed. If you’re employed by a firm, you loan repayments are taken automatically from your wage at the same time that National Insurance and Income Tax are taken. If you’re self-employed, HMRC will use your tax return to work out exactly how much you will have to repay. You make the payment at the same time you pay your tax.

Further reading

For information on the current interest rates charged by the Student Loan Company click here.

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