What are the Earning Thresholds and Rates for Student & Postgraduate Loans?
6 April 2021
The Department for Education has confirmed that from 6 April 2021 the Plan 1 and Plan 2 Student Loans thresholds will increase to:
- £19,895pa for Plan Type 1
- £27,295pa for Plan Type 2
- £25,000pa for Plan Type 4
Student Loan deductions will continue to be calculated at 9% on earnings above the Plan 1, Plan 2 or Plan 4 threshold. The Postgraduate Loan threshold will remain at £21,000.
Earnings above £21,000 will continue to be calculated at 6%. Employers will be notified of any plan type moves from Plans 1 to 4, using the current SL1/PGL1 notification process, in time for April 2021.