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Student loan repayment thresholds

David McManus

David McManus | Tax Advisory and Compliance Service

Friday 22nd Feb, 2019

It has been announced that, from April 2019, the amount that income needs to be over before student loans will start to be repaid is set to increase. The thresholds for plan 1 and plan 2 are due to increase by 2.9% (in line with inflation) to:

  • Plan 1 - £18,935 (from £18,330 for 2018-19)
  • Plan 2 - £25,725 (from £25,000 for 2018-19)

The amount of deductions will remain the same at 9% for plan 1 and plan 2 loans.

In addition to this, a new student loan product, a Postgraduate Loan (PGL) has been launched. The student loan threshold for PGL for England and Wales will be £21,000, with deductions being taken at 6%.

Student Loans and Self Assessment

Paying back Student Loans through Self-Assessment can sometimes lead to errors which can in turn lead to the involvement of HMRC and the Student Loans Company. When looking at repayment calculations, you initially need to consider which repayment plan you're on.

Read more here