I received support from Student Finance England (SFE) for my undergraduate degree, and made repayments when earning over £15,000. Either this year or next, I will start a NHS funded degree and take out a non-means tested student loan from SFE to supplement NHS funding.
I would like to know what the repayment situation will be once I graduate given the changes to student funding and HMRC's new real-time PAYE system. Will my student loans be kept separate? For example, if I earn £16,000 will I only repay my original loan? Or if I earn £25,000 will I have two separate deductions? This seems highly unlikely and unpractical. The only thing I can think of is that my new loans will be simply added to my old account and I will continue to pay x amount over £15,000 or my old loans will be changed so I pay y amount over £21,000.
Any clarification would be much appreciated.
- Thread Starter
- 27-03-2013 23:19
Mark Lee - SFE Official Adviser
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Offline2ReputationRep:Official TSR Representative
- Official TSR Representative
- 28-03-2013 14:53
In this circumstance you will have deductions taken when you earn over the lower threshold.
At the end of the tax year when we receive your repayments we will calculate the amount to be applied to your original loan and the amount to be applied to your newer loan.
If you earn above the existing threshold but not above the new threshold then this means that any repayments taken will be paid to your original loan.
Hope this helps,