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Plan 2 - PGCE option

 

If you took out an Income Contingent Loan for a PGCE course and had previously taken out a Mortgage Style Loan you may have the option of choosing which loan you want to repay first.


When and how we let you know about the PGCE Option?

You normally start to repay your Income Contingent Loan in the April following the date you graduate or leave your course. In the January prior to this, we will send you a PGCE option letter and form.


What repayment options do you have?

You have 3 options, they are:

  1. repay your Mortgage Style Loan first
  2. repay your Income Contingent Loan first
  3. repay both types of loan at the same time.

You should complete and return the PGCE Option Form to us advising which loan(s) you would wish to repay first

Alternatively, you can call us on 0300 100 0611 and update your option over the phone

You can change your option at any time by contacting us on the number above.


Option 1 - what happens if you choose to repay your Mortgage Style Loan first?

You will begin to repay your Mortgage Style Loan.

If your Mortgage Style Loan(s) is deferred, your debt owner will cancel any deferment period to allow the repayments to begin.

Repayment of your Income Contingent Loan will be suspended until you change your PGCE option or you have fully repaid your Mortgage Style Loan(s).


Option 2 - what happens if you choose to repay your Income Contingent Loan first?

You will begin to repay your Income Contingent Loan via the UK Tax System, if your income is above the Income Contingent Threshold. Your repayments will be collected by HM Revenue & Customs (HMRC) through one or both of the following methods:

You will make repayment directly to us if you are employed overseas.

Deferment of your Mortgage Style Loan while repaying your Income Based Loan

If you wish to repay your Income Based Loan first but are currently repaying your Mortgage Style Loan(s), you must apply for deferment of your Mortgage Style Loan(s).

To apply for deferment please contact your debt owner on the relevant telephone number below to request a deferment application form.

  • Thesis Servicing: 03330 045 045 or if you’re calling from overseas +44 292 080 8684
  • Honours Student Loans Ltd: 0844 826 7835 or if you’re calling from overseas +44 113 207 3154
  • Erudio Student Loans Ltd: 0333 003 7188 or if you’re calling from overseas +44 141 278 6114

What if my Mortgage Style Loan is already deferred?

You will receive a new deferment application form towards the end of your current deferment period and you should complete this if you wish to apply for deferment again.


Option 3 - what happens if you choose to repay both types of loan at the same time?

You will begin to repay your Mortgage Style Loan(s) monthly. If your Mortgage Style Loan is deferred your debt owner will cancel any deferment period, allowing repayment to begin.

You will also begin to repay your Income Based Loan via the UK Tax System, if your income is above the repayment threshold (or directly to us if you are employed overseas).


What happens if you do not advise us of your preference for the PGCE Option?

If you don’t indicate your preference this may result in you repaying both types of loan at the same time.


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