Student Loans – A new loan

A new student loan product know as postgraduate loans (PGL) has been launched. The earliest a student can start repayments of a PGL is April 2019 and so you might receive notifications about deductions you need to make from employees’ wages after that.

Where an employee is to repay a PGL, HMRC will send you a start notice (PGL1) asking you to make deductions and a postgraduate stop notice (PGL2) will be issued when HMRC wants you to stop.

The Department for Education (DfE) has confirmed the student loa threshold for PGL for England and Wales will be £21,000, with deductions being taken at 6%.

Please note than you also might be required to make student loan deductions under the existing plans, Type 1 or 2, as well as those for the new PGL.