The ICR loan scheme has been separated into different repayment arrangements called Plans 1, 2 and 3

Some aspects of the student loan system are based on tax years (the 12-month period starting on 6 April), but as a simplification the student loan models assume that this is the same as the equivalent financial year.

While they operate in a similar manner, they differ in some ways such as the repayment thresholds, interest rates and the length of borrowers’ repayment terms.

Plan 1 is the loan system for undergraduate students that started courses before , Plan 2 the system for undergraduates since and for Advanced Learner Loans, and Plan 3 the system for postgraduate loans introduced in 2016.

See the methodology document for further detail on how Covid-19 has been factored into the forecasts. However, it should be noted that the full impact is still currently unknown and inherently uncertain due to the complexity of Covid-19 and the many factors that may impact both student and provider behaviour, ultimately driving student numbers.

Since academic year , nursing, midwifery and allied health profession (AHP) entrants have been eligible to apply for tuition fee loans. Fee loan-eligible entrants to these courses are forecast separately from the wider population as they are expected to grow at a higher rate, with specific Government policies aimed at increasing https://badcreditloanshelp.net/payday-loans-sd/ the uptake of these courses.

Nursing, midwifery and AHP fee loan-eligible entrants are forecast to grow from 25,000 in to 32,000 in , this is at a much higher rate (28.8%) to other fee loan-eligible entrants (19.9% for England-domiciles and -97.1% for EU-domiciles, 4.4% overall). The forecast growth rate for nursing, midwifery and AHP aligns with that expected by Department of Health and Social Care (DHSC). While application trends are important for determining appetite to study, available clinical placements and DHSC policy intentions are the main drivers of growth in nursing, midwifery and AHP student entrant numbers.

The decrease in Plan 3 postgraduate master’s loan outlay from 2021-22 to 2022-23 is driven by a forecasted decline in EU domiciled entrants.

For part-time higher education students, the RAB charge is 46%. Part-time students generally take out smaller loans than full-time students, meaning they are more likely to repay a higher proportion of their loans. Maintenance loans for part-time students were extended to on-?campus, degree level borrowers only in . Distance learners and on-campus, sub-degree borrowers are eligible for tuition fee loans only.

Table 6 shows the transfer proportion forecast for financial years 2018-19 to 2025-26. The transfer proportion is used within the Office for National Statistics (ONS) public sector finance statistics. Under the partitioned loan transfer approach, student loan outlay is partitioned into lending and transfer elements. Conceptually the transfer proportion is the fraction of student loan outlay identified at loan inception as government expenditure, in recognition that this portion of the loan is unlikely to be repaid. The transfer proportion is forecast to remain the same in 2020-21 compared to previous year forecast for Plan 2 full-time loans and decrease by 2pp for Master’s loans. .

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

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The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

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The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

The impact of the Covid-19 pandemic, has driven an increase in the number of master’s loan borrowers in academic year

Fully repaid loan The borrower has repaid the loan in full during their repayment term without it being cancelled.
Higher education full-time loan Loans available to students on full-time higher education courses, including first degrees, sub-degrees and certain postgraduate courses (e.g. Postgraduate Certificate in Education or PGCEs) that are eligible for the undergraduate loan system
Higher education part-time loan Loans available to students on part-time higher education courses with an intensity of 25% or higher.
Household Residual Income The household gross income minus payments to private pension schemes, additional voluntary contributions and employment related costs as well as allowances for dependants and students.
Income Contingent Repayment (ICR) loan Loans for which the required repayments are based on the borrower’s income. The type of student loan that has been available to students since 1998.
Liable to make repayments The borrower has a remaining loan balance and has reached their Statutory Repayment Due Date (SRDD).
Maintenance loan Maintenance loans are loans to cover living costs, paid directly to the student.
Master’s loan Loans issued to students on Master’s courses, on the Plan 3 repayment system. They are paid directly to students and can be used to cover fees or living costs.
Plans 1, 2 and 3

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