Post Graduate Loan Repayment
by Admin
Posted on 17-10-2022 10:26 AM
The april after you leave your course
the april 4 years after the course started if your course is longer than 4 years, for example if you’re studying part-
time
or doing a postgraduate doctoral course
your repayments automatically stop if either:
you stop working
your income goes below the threshold.
You’re paid weekly and your income changes each week. This week your income was £600, which is over the postgraduate loan weekly threshold of £403. Your income was £197 over the threshold (£600 minus £403). You will pay back £11 (6% of £197) this week.
With effect from april 2022, the thresholds for making student loan deductions are: plan 1 — £20,195 annually (£1,682. 91 a month or £388. 36 a week) plan 2 — £27,295 annually (£2,274. 58 a month or £524. 90 a week) plan 4 — £25,375 annually (£2,114. 58 a month or £487. 98 a week) employees repay 9% of the amount they earn over the threshold for plan 1, 2 and 4. Postgraduate loans ( pgl ) — £21,000 (£1,750 a month or £403. 84 a week) employees repay 6% of the amount they earn over the threshold for pgl.
This page looks at the repayment of postgraduate loans (both master’s and doctoral loans) in england and wales. The first repayments for these loans started to be collected from april 2019. Northern ireland collects postgraduate loans as plan 1 loans. From april 2021, scotland collects postgraduate loans as plan 4 loans.
Repaying your student loan
No. This is a common misconception about student loan repayments, but it has the potential to be quite alarming. Your postgraduate (and undergraduate) loan repayments will only ever be taken from the income you earn over your threshold. For example: if you earn £25,000 in one year and have an english postgraduate loan, you will be eligible to make repayments during that year. This is because £25,000 is above your repayment threshold of £21,000. However, you will only repay 6% of £4,000 (your income over £21,000) not 6% of £25,000 (your full salary).
This is the difference between repaying £20 a month or repaying £105 a month - quite significant!.
You can still apply for the postgraduate master's loan if you already have an undergraduate student loan to pay off – but it's worth knowing that you might have to start making repayments on both at the same time, depending on your salary after uni. Once you meet the salary thresholds, you'll pay 9% on anything above that to your undergraduate student loan, plus 6% towards your postgraduate loan. However, as the undergraduate threshold for english students is higher than the postgraduate one (£27,295 as opposed to £21,000), there is a bit of a buffer between the two. What's more, even if you're repaying your undergraduate student loan and postgraduate loan at the same time, both will be treated as separate loans and will not be joined together at any point.