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Original poster

Student Loan thresholds changed

15 replies

brushandmop · 17/02/2021 21:31

Hi everyone,

I have a student loan in the UK but now live overseas. Every year I send them my details and they update my payment schedule.

This year, I have been emailed that the plans are changing and now the thresholds have been raised (by a huge amount). Consequently I don't need to pay anything.

Has anyone else had this email? It affects UK residents too...I don't understand why the thresholds have been raised and can't see any news relating to it.

I don't mind obviously and will continue to make voluntary payments. I just wondered if anyone had some information as to why this has happened. Thanks

OP posts:
Cookerhood · 17/02/2021 21:38

Unless it's an old loan why would you make voluntary payments? It won't reduce your future payments, will it?

Original poster
brushandmop · 17/02/2021 22:32

It's a good point but I've been budgeting in the loan repayments so I would rather keep going and get rid of it sooner rather than later.

I would consider it quite an old loan as when I was working in the UK my repayments were really minimal as I wasn't on a high wage.

OP posts:
BashfulClam · 17/02/2021 22:34

When I worked their it changed every year. It was due to inflation. If you can defer just defer.

Interested in this thread?

Then you might like threads about this subject:

General money
BashfulClam · 17/02/2021 22:35

*there

Original poster
brushandmop · 17/02/2021 22:59

the threshold has doubled. It's a huge change.

OP posts:
milienhaus · 17/02/2021 23:06

I don’t see anything about this on the gov.uk student loan repayment page ... are you sure it’s a genuine email?

Original poster
brushandmop · 17/02/2021 23:30

Yes, the email is not asking me to log in, it has my Customer Reference number, knows I applied in Scotland and I;ve recieved emails before from the same @slc.co.uk email address

OP posts:
Original poster
brushandmop · 17/02/2021 23:33

I am thinking now it is because I am Scottish. I just reread the email

Your repayment plan is changing from Plan 1 to Plan 4. This change is for students who applied for loans from Student Awards Agency Scotland during their studies. You may notice this change in your repayment account from April 2021.

Would be keen to hear if anyone else has received anything though? Thanks

OP posts:
DowntonCrabby · 17/02/2021 23:35

Yep it’s a change in Scotland. I got an email too yesterday and double checked, it’s legit.

Original poster
brushandmop · 17/02/2021 23:38

Ah thankyou! I couldn't believe the difference.

Really appreciate the confirmation.

OP posts:
heidbuttsupper · 17/02/2021 23:39

Scotland here too @brushandmop I got the email yesterday

bump2677 · 17/02/2021 23:39

I got the email too. Definitely looks real but there doesn't seem to be anything about there being a plan 4 on their website. It's all a bit strange. It's gone up quite a bit. I'm about to go on Mat leave though so my payments that usually come out through PAYE will stop anyway for a while.

If we're under the threshold we still have to pay interest on it though don't we? So it's better to keep up some kind of payment if affordable to limit the interest.

Original poster
brushandmop · 17/02/2021 23:45

Yes - interest is 1% or thereabouts so I will keep paying.

For once I was all organised with my paperwork and then I get this lol

OP posts:
Cookerhood · 18/02/2021 09:13

Please read Martin Lewis on student loans & don't carry on paying, it won't make any difference to your repayments in the future. Think of it as a graduate tax not a loan (caveat, it may be different in Scotland).
www.moneysavingexpert.com/students/student-loans-tuition-fees-changes/

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