![]() ![]() Please note that numbers above are estimates only. Estimates will be different if you live in Alaska or Hawaii. Starting July 1, 2024, the SAVE plan is sensitive to the split between undergraduate and graduate school loans and are based on the original principal balances. In some circumstances, loans may be written off sooner - for example, if you become unable to work due to disability.IDR plan calculations are based on the accuracy of the inputs. Loans under plan 2 are written off 30 years after they first become eligible to be repaid (the April after your course finishes). If your first loan was taken out during or after September 2006, the loan will be written off 25 years (35 years in Scotland) after it becomes eligible to be repaid (typically the April after you finish your course). However, loans can be written off even if the repayment has not been completed - although this is normally only after a long period of time.įor loans under plan 1, where the first loan was taken out before September 2006, any remaining balance will be written off when you reach the age of 65. You can voluntarily make additional payments to reduce the balance of your loan, or even to pay off the whole balance. Once you have paid off the outstanding balance, plus any interest, of your student loan, you will no longer be asked to make payments. In fact, plan 2 is being considered by some to be a "Graduate Tax" rather than a loan repayment. The combination of the higher repayment threshold and the higher interest rate means that it will take longer for those on plan 2 to repay their loans than those on plan 1. ![]() After that date, the interest rate is increased if you earn more than £21,000, up to a maximum of RPI + 3% if you earn £41,000 or above. Once you have finished your course, the RPI (3.1%) is charged until 1st April 2018. While you are a student, the interest rate charged on your loan will be RPI + 3% (currently 6.1%). The current RPI used for Student Loans, applied from 1st September 2017, is 3.1%. Plan 2 loans have an interest rate which is tied to the Retail Price Index (RPI), and also depends on the current date and how much you are earning. It is possible that your repayment amount is less than the monthly interest, in which case the tool will not be able to provide an estimated time to repay. The latest interest rate from 1st September 2017 is 1.25%, which the tool will use to estimate the time taken to repay your loan. ![]() Plan 1 loans have a reasonably low interest rate which is applied every year by the Student Loans Company. The interest rates are different for Plan 1 and Plan 2, which means that the time taken and the amount paid over that time will be different depending on which plan you are on. It also assumes that you are paid monthly (and therefore are repaying the loan monthly). This is just an estimate which assumes that your salary remains the same for the repayment period, as do the payment thresholds, percentages and the interest rate being charged. ![]() If you enter your total outstanding loan amount into the box above, the student loan repayment tool will try to work out how long it will take for you to pay off your student loan. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |