Student Loan 2015 Discussion

Taiko

I'm guessing it wasn't an English degree?

gadgetmind

susanblack6520 wrote: »

i have graduate for almost 2 yaers. for a student, study hard is a must be.

In this one, strong the force is.

Cathylb

Apologies, I meant to say for students starting in 2012.
My fellow students on my Access course are also very interested in the answer.
Thank you.

robins66

My son completed his degree 8 years ago and struggled to get a reasonably paid (not well paid) job in the sports industry. He ended up taking a job in a call centre and is working is way up within the Company. He is still repaying his student loans and other debts accrued whilst at University.
My daughter IS going to University in 2012. I worry for her. I also feel very angry that she, as a British citizen, living in England, part of the UNITED KINGDOM, will accrue enormous debts during her time at University, whilst other British citizens in Scotland, Wales and Northern Ireland WILL NOT have to accrue such debts, partially due to the subsidies the British Government make, particularly in Scotland from the taxes paid by ALL British citizens, including the parents of English students.
WHY are ENGLISH children being discriminated against simply because they live in England rather than any other part of the UK?

tyllwyd

Cathylb wrote: »

Hi Folks!
Can anyone tell me if mature students are expected to pay any outstanding loan repayments once they have retired? So that would be from their private and/or state pension?
I have been searching for this info for a while without any success and will be retired within the 30 year write-off period.
Thank you.

From everything I have read, it seems that there is a 30 year write off but not one on retirement, so you will continue to pay student loan payments after retirement. But remember that pension payments are taxable anyway, and the income thresholds will continue to apply, so for the majority of pensioners I would imagine that monthly student loan repayments would be very little, if anything.

I wonder if there might be a possible method of tax planning here - rather than paying into a pension (where the income you receive is taxable) perhaps it might be advantageous to pay as much as possible into an ISA, where the money you withdraw is not taxable and thus perhaps won't be taken into account when calculating your income for student loan repayment purposes. That's just a thought, it may not work and may have other disadvantages, but perhaps worth getting some advice on that option.

JimmyTheWig

tyllwyd wrote: »

I wonder if there might be a possible method of tax planning here - rather than paying into a pension (where the income you receive is taxable) perhaps it might be advantageous to pay as much as possible into an ISA, where the money you withdraw is not taxable and thus perhaps won't be taken into account when calculating your income for student tax repayment purposes. That's just a thought, it may not work and may have other disadvantages, but perhaps worth getting some advice on that option.

Conversely, I would imagine (though I don't know) that you don't pay student loan repayments on money that you pay into your pension fund.
I.e. someone earning £40k and paying £5k into their pension fund will pay the same amount of student loan repayments as someone earning £35k and not paying anything into their pension fund?

Oldernotwiser

JimmyTheWig wrote: »

Conversely, I would imagine (though I don't know) that you don't pay student loan repayments on money that you pay into your pension fund.
I.e. someone earning £40k and paying £5k into their pension fund will pay the same amount of student loan repayments as someone earning £35k and not paying anything into their pension fund?

Student loan payments come out of gross income.

gadgetmind

Oldernotwiser wrote: »

Student loan payments come out of gross income.

Really? I guess grads need to find an employer that does salary sacrifice!

JimmyTheWig

Oldernotwiser wrote: »

Student loan payments come out of gross income.

How does that work for someone with a company (e.g. final salary) pension?
Do they have to make student loan payments on their equivalent pension contributions?
Does this mean that some people may not be able to afford to take a pay rise?

kayr_2

Apologies if this is in the wrong place or it's old news but just saw it in The Guardian - thought it was an interesting development.

http://www.guardian.co.uk/education/2011/oct/17/coventry-university-college-half-price-degree