Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Skip to content
Home » What is Plan 1 or Plan 2 student loan?

What is Plan 1 or Plan 2 student loan?

If you’re a student navigating the complexities of student loans in the UK, you may have come across the terms “Plan 1” and “Plan 2.” These designations refer to the types of student loans available in England, Wales, and Northern Ireland, each with its own set of conditions and repayment structures.

Plan 1 loans, also known as “Income Contingent Repayment” (ICR) loans, are for students who started their courses before September 2012 in England or Wales. Additionally, students who took out loans in Northern Ireland fall under this category. These loans have a fixed interest rate and repayment threshold, meaning the amount you repay is based on your income.

On the other hand, Plan 2 loans are for students in England and Wales who began their studies from September 2012 onwards. These loans have a different repayment threshold and interest rate compared to Plan 1 loans. They are also under the Income Contingent Repayment plan, but the terms vary slightly, so it’s essential to understand the specific details if you have a Plan 2 loan.

Navigating student loans can be confusing, especially with different plans and terms to consider. It’s crucial to be aware of which plan your loan falls under, as this will impact your repayment schedule and the total amount you repay over time. If you’re unsure about your loan type, you can check with the Student Loans Company or your loan provider for clarification.

(Response: Understanding the difference between Plan 1 and Plan 2 student loans is crucial for borrowers in the UK. Plan 1 applies to loans taken before September 2012 in England, Wales, and loans in Northern Ireland. Plan 2, on the other hand, is for loans taken from September 2012 onwards in England and Wales. Knowing your loan plan helps you navigate the repayment terms and ensures you manage your student debt effectively.)