Student Loans

The Student Loans page enables you to identify the type of student loans held by your client and to enter the deduction from earnings for the year in respect of those loans.

Undergraduate loans

Plans 1, 2 and 4 relate to undergraduate loans.

  • Individuals living in Northern Ireland or who were EU students funded by Northern Ireland will make repayments under Plan 1.
  • Individuals living in Scotland or who were EU students funded by Scotland will, from 5 April 2021, make repayments under Plan 1.
  • If an individual has multiple undergraduate loans falling within different plans, then the tax calculation will treat the loans as falling within the plan with the lowest income threshold.
Note:

• An individual may have to make repayments in respect of both an undergraduate and postgraduate loan at the same time. In such cases the individual will pay 15% of their earnings above the thresholds.

• For the purposes of calculating student loan repayments, unearned income of up to £2,000 is excluded. Unearned income in excess of £2,000 is included in full.