The Department for Education (DfE) confirmed 11th August 2020 the annual updates to the Thresholds of Income Contingent Student Loans and Mortgage Style Student Loans.
Income Contingent Student Loans / Undergraduate loans / Income Contingent Student Loans for pre-2012 (Plan 1) loans
From 6 April 2021, the repayment threshold for Plan 1 loans will rise to £19,895.
Income Contingent Student Loans for post-2012 (Plan 2) loans
The repayment threshold for post-2012 (plan 2) loans will rise to £27,295 from 6 April 2021 to 5 April 2022.
The repayment threshold for Postgraduate loans continues to be £21,000.
Scottish Student Loan changes April 2021
Scotland’s First Minister announced that Scotland will raise their Student Loan threshold to £25,000 from April 2021, this increase in threshold has created the need to introduce a new Scottish Student Loan (SSL) threshold known as Plan 4.
From April 2021, borrowers with a Student Loan issued by the Student Awards Agency Scotland may be switched to the new Plan type 4. Employers will be notified by the issue of form SL1 to change from Plan 1 to 4, as advised to HMRC by the Student Loan Company. This will have an impact on the majority of SSL borrowers.