Call Us :  0333 4141920  | Email: admin@nashharvey.com 

Search


Different types of student loan
19/11/2019

Student Loans are part of the Government’s financial support package for students in higher education in the UK. They are available to help students meet their living costs while they are studying.

There are two main types of student loan.

  1. Fixed - term repayment loans (old - style loans). These loans were available to students commencing a course of higher education up to and including the academic year 1997-98 and are often known as ‘fixed - term repayment’ or ‘mortgage – style’ loans. Repayments are made directly to the Student Loans Company (SLC).
  2. Income - Contingent Loans (new - style loans). These loans replaced the fixed - term repayment loans and became available to students commencing a course of higher education from the academic year 1998-99. It is HMRC’s responsibility to collect repayments where the borrower is working in the UK. The SLC is responsible for collecting the loans of borrowers outside the UK tax system. There is an annual threshold below which repayments are not due. If the borrower’s income is above the threshold, repayments will be made according to the level of income. There are two main types of loan known as 'Plan 1' and 'Plan 2'. Repayments are deducted at a rate of 9% of income over the threshold, although each plan has a different threshold.

In April 2019, a new loan for England and Wales known as Postgraduate Loan (PGL) was introduced. There are separate thresholds and rates for these loans.


Maidstone Office


The Granary, Hermitage Court Hermitage Lane
Maidstone
ME16 9NT
 
 
 
This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 0333 4141920

London Office


Studio 1
305a Goldhawk Road
London Office
W12 8EU
 
 

This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 020 8746 3708

Ashford Office

 
Suite 13 Letraset Building
Wotton Lane  Ashford
Kent
TN23 6FL
 
 

This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 0333 4141920

Membership

Nash Harvey Group LLP is a limited liability partnership registered in England
Reg No: OC376161 | VAT Number: 137 7621 01
Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.