Student loans are available for students in higher education in the UK to help them meet their expenses while they study.
After their studies, borrowers repay their loans through payroll. Plan 1 loan rates apply to those who started their studies before 1 September 2012 and Plan 2 repayments apply to all those who started studying after this date.
In the tax year 2020/21 the Student Loan Plan 1 rate will rise from £18,935 to £19,390 per year and the Plan 2 rate, which currently is £25,725 will rise to £26,575.
All earnings above the thresholds for both Plan 1 and Plan 2 for 2020/21 will still be calculated at 9%.
Although both the Plan 1 and Plan 2 are changing, the rate of the postgraduate loan will remain the same in 2020/21 at £21,000 and will continue to be calculated at 6%.