When do I start paying back my student loan?

kevin612

I am currently a third year student going to grad on July 09.
But then I am going to study Msc in year 09-10.
Do I start paying back then or I can get one more year of student loan?
And do I pay back 7 pounds per week if I have a salary of 15K+ per year?

Cause I think the student loan have changed a bit.

Anyone can tell me about how to pay back student loan and the minimum fee?

Thanks

Eccle_2

You won't pay anything back until you're earning at least £15k, so if you do the MSc, assuming you don't also have a job earning more than that at the same time, you won't start paying back yet. However, I also don't think you're entitled to any further student loans for a masters.

Once you earn over the threshold, the payments are taken directly from your salary by HMRC, it's 9% of what you earn over 15k.

The_One_Who

You won't start paying back the loan until you are earning over £15,000 and then you will repay 9% of the salary over the threshold. It will come out of your salary so you don't have to actively do anything.

For a Masters you will not be entitled to get a student loan, so will have to look into alternative funding such as research grants or a Career Development Loan.

kevin612

Is the 9% per year or per month?
And how long do I have to pay for?
Also, if I worked for around three years then I go around.
What do I have to do to the student loan?
Continue to pay the 9% of my salary?

I dont really know what is Career Development Loan, how do I get them?
As I would like to study Master and would like to have a loan to kind of support my family.
As don't want them to pay for my fees.....

kevin612

BTW, how come I have heard from people saying that they can pay back their student loan for 5 pounds per week for 25 years?

The_One_Who

The 9% is per month, I think. If you took it out on, or after 2006 then you will continue to pay until the balance gets cleared or 25 years (35 in Scotland).

I don't really understand the next bit, do you mean abroad? If so you have to contact the SLC and tell them. There are different thresholds for different countries, but you will continue to pay it off. They can tell you exactly how it would work in your destination country.

I'm not sure about paying off a set amount. That might be what they've worked out is coming off their salary every week until they've paid it back or until the 25 years when it gets cleared. Earlier loans have different repayment terms and I'm not sure on those.

CLAPTON

The repayment is based on 9% of the monthly salary over 1250.

Eccle_2

The thing about £5 a week over 25 years I'm not sure about. People with loans taken out before 1998 repay on a different basis, but I thought that was a higher amount over a shorter time.

As said, they work out the 9% on your monthly salary, so if you got say a bonus at work one month it would come off that too.

kevin612

Does the student loan have tax per year?
As I m getting charged every year for around 1000+ pounds.
Also, will it be better to pay off more than 9% if I have a higher salary say 25K?
As I dont want the tax rate adding up every year.
Kind of you will never pay it all off even you die....

The_One_Who

It is not taxed, but there is interest added on.

My advice would be not to pay off the extra, as that extra money would be better off in savings, but other people feel better not having any debt and so pay off more than the minimum.

It will get wiped after 25 years if it hasn't been paid off, if you took the loan out in 2006 or after.

kevin612

o right..but then what is the interest rate for that per year?
I might just let it be after I start working.

But can you tell me how can I get Career Development Loan?
As I really dont know what is that.

Thanks