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Plan 2 - Frequently asked questions


Why am I getting charged more than one rate of interest in the same month?

You may see two or more rates of interest being charged each month on your statement if you have two or more Plan 2 loans for different courses.

For example, if you started and left a course before 6th April 2018 then started a new course after that – and took a loan out for each of those courses – you’d be charged:

  • a rate of RPI for the loan from your first course from 6th April after you left the course until 5th April 2019; and
  • a rate of RPI plus 3% (6.3%) for the loan from your second course until the April after you complete or leave your second course.

The interest rates page contains more information about how rates are calculated depending on your circumstances.

What happens if I change employer?

If you change employer, your new employer may ask which repayment plan type you have, Plan 1 or Plan 2, to set the correct threshold and to work out any repayments deductions based on your income. Your plan type can be found on any recent correspondence. You can also work it out yourself by answering these questions

I think I have paid off my loan, what should I do?

Call us on 0300 100 0611 or 0300 100 0370 if you live in Wales. Make sure you have copies of your last P60 and recent payslips to hand when you call us.

I think I have overpaid my student loan, what should I do?

You should contact us as soon as possible on 0300 100 0611 or 0300 100 0370 if you live in Wales.

You will be entitled to a refund if you overpay your loan but we can only authorise a refund either:

  • once HMRC confirms your total earnings and student loan repayments at the end of the tax year; or
  • you send us your pay slips showing your student loan deductions for the current tax year.

I earned less than the repayment threshold but had repayments taken. Can I get a refund?

Yes, you can apply to us for a refund of any repayments you have made where you earned less than the repayment threshold for that financial year. The repayment threshold is:

  • £21,000 - up to and including financial year 2017/18
  • £25,000 - for financial year 2018/19
  • £25,725 - for financial year 2019/20

Please note that we can only process a refund at the end of a tax year either once we've received confirmation of your PAYE income and student loan deductions from HM Revenue & Customs or where you supply us with a P60 showing this information.

You may decide you do not want a refund, in which case you will pay off your loan more quickly and pay less interest on the outstanding balance.

I'm not due to repay my loan yet but my employer has taken deductions?

You are due to make repayments from the April after you complete or withdraw from your course if you are earning above the repayment threshold for your type of loan.

If your employer has taken deductions early please contact us

I have a Plan 1 and a Plan 2 loan, what happens when I pay one plan type off?

When you’ve repaid one of your plan types we’ll write to you to let you know.

If you repay your Plan 1 loan first, you’ll start, or continue, to make repayments towards your Plan 2 loan. Find out more about Plan 2 thresholds

If you repay your Plan 2 loan first, you’ll start, or continue, to make repayments towards your Plan 1 loan. Find out more about Plan 1 thresholds

You’ll only make repayments if your income is over the relevant threshold.

If you have a Plan 1 loan and a Plan 2 loan, and from the information you give us you have repaid one plan type, we’ll request that your employer only makes deductions based on the remaining plan type threshold.

What if I have repaid too much and have a credit balance?

If you have a credit balance we’ll write to you and ask you to contact us.

The following table explains interest on credit balances and refund options based on your plan type(s).

Plan type Credit interest
Plan 1 only You’ll accrue credit interest on your refund amount for up to a maximum of 60 days
Plan 2 only
Plan 1 and Plan 2 – both plan types have a credit balance refund available
Plan 1 and Plan 2 – one plan type in credit, one with outstanding balance
  • You can request the refund or use it to reduce the balance on your other outstanding student loan(s).
  • We’ll automatically allocate the credit balance to your outstanding plan type balance if we haven’t heard from you within 60 days of the date on your letter.
  • You’ll only gain interest on the refund amount for up to a maximum of 60 days

Can my Income Contingent Loan be written off?

Normally any outstanding loan you have will be written off 30 years after it becomes eligible to be repaid.

If you receive a disability-related benefit and are permanently unfit for work, we can cancel the loan. However, we cannot cancel a loan unless we receive medical confirmation together with evidence of your disability benefit.

If you took an Advanced Learner Loan find out more about when your loan will be written off.

How direct repayments are applied to your balance

When you make a repayment directly to SLC, the way the money is applied to your balance depends on the status of your account. Find out more about the way direct repayments are allocated to your balance.

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