Repaying more than one student loan
Depending on where you live and when you studied on your courses, it is possible you have more than one student loan but under different plan types. For example, a Plan 1 and a Plan 2 loan, or perhaps a Plan 2 and a Plan 4 loan.
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More than one student loan: how repayments work
If you are unsure what loans you have you should contact the Student Loans Company (SLC).
If you have more than one student loan on different Plan 1, Plan 2 or Plan 4 loan agreements then you will still make one repayment, for example through your payroll or through self assessment if you complete a tax return.
If you are an employee, your form P45 will not show which type of loan(s) you have, so your employer should ask you what student loans you are repaying. If you do not confirm what loan type you have, you will automatically be allocated a Plan 1 loan and this may result in incorrect repayments being deducted through Pay As You Earn (PAYE).
Please note: this differs from how postgraduate loans are collected if you are also repaying a Plan 1, Plan 2 or a Plan 4 loan.
Your student loan repayment will be allocated against the two types of loans depending on how much you earn and the repayment thresholds for the loans.
Allocation of repayments: more than one student loan
Different student loan plans have different repayment thresholds. If you have more than one student loan under Plan 1, Plan 2 or Plan 4, your repayments would be allocated as follows:
- For earnings below the lowest repayment threshold of your plan types – you make no loan repayments.
- For earnings between the lowest repayment threshold and the repayment threshold of your other plan type – you will make loan repayments towards your plan with the lowest repayment threshold.
- For earnings above your highest repayment threshold – your repayments will be allocated towards both loans.
Plan 1 and Plan 2 loans: repayment allocation
For the 2023/24 tax year, the repayment thresholds are as follows:
- Plan 1 loans: £22,015
- Plan 2 loans: £27,295
If you earn below £22,015, you will make no loan repayments.
If you earn between £22,015 and £27,295, you will make Plan 1 loan repayments only.
If you earn over £27,295, you will make repayments which will be spread across both your Plan 1 and Plan 2 loans. Repayments calculated on income between £22,015 and £27,295 will be allocated against your Plan 1 loan and repayments calculated on your income above £27,295 will be allocated against your Plan 2 loan.
Plan 2 and Plan 4 loans: repayment allocation
For the 2023/24 tax year the repayment thresholds are:
- Plan 2 loans: £27,295
- Plan 4 loans: £27,660
If you earn below £27,295 you will make no loan repayments.
If you earn between £27,295 and £27,660 you will make Plan 2 loan repayments only.
If you earn over £27,660 you will make repayments which will be spread across both your Plan 2 and Plan 4 loans. This means that repayments calculated on income between £27,295 and £27,660 will be allocated against your Plan 2 loan and repayments calculated on your income above £27,660 will be allocated against your Plan 4 loan.
Direct debit repayments: more than one loan
Towards the end of repaying your loans, you can switch to monthly direct debits when you have fully repaid one loan and you expect to finish repaying your other loan over the next two years. See the heading Opting out of Plan 1, Plan 2 and Plan 4 repayments on our Employees: student loan repayments page.
Repayment start dates: more than one loan
If you have more than one student loan, you start to repay your loan if you are earning over the repayment threshold from the April after you graduate from each course separately.
For example, if you have both a Plan 1 and Plan 2 loan and you graduated from your first course in July 2012 and from your second course in July 2023 and begin a new job in August 2023 earning £28,000 annually then you will immediately start repaying your Plan 1 loan as you graduated from the course in July 2012, but you will not start repaying your Plan 2 loans until the April after you graduated from that course, so Plan 2 repayments will start from April 2024.