Student Loan 2015 Discussion

Stebbsy

Hi,
I'm new to the forum.
I am a mature student (36) starting uni this September. Does anyone know what happens to your student loan if you retire before 30 years is up? Will I still have to repay it?
Thanks :-)

Ed-1

Stebbsy wrote: »

Hi,
I'm new to the forum.
I am a mature student (36) starting uni this September. Does anyone know what happens to your student loan if you retire before 30 years is up? Will I still have to repay it?
Thanks :-)

Nothing happens to it - what do you think would happen to it?

Repayments are 9% of income above the threshold taken from your pay. If you aren't earning over the threshold, no repayments are taken. After 30 years from the April after leaving the course, the loan is written off by the government. In the meantime, it just sits there accruing interest.

tyllwyd

Since you will be paying for 30 years, in theory you would be paying out of your pension, if above the threshold.


The student loan company website says this



Student Loan deductions and Occupational Pensions


If you are in receipt of an occupational pension that is not subject to Class 1 National Insurance Contribution (NIC) deductions, your pension payer should not take any student loan deductions.
Student loan deductions should only be made from income that is subject to Class 1 National Insurance Contributions at the point of payment. If you are unsure what kind of pension you are being paid you should ask your pension payer for information. The pension payer will however still have to deduct income tax in the normal way. The only time an occupational pension could attract student loan amounts would be if you are required to complete an annual Self-Assessment (SA) Tax Return for HM Revenue & Customs and the total of all your unearned income exceeds £2,000.

Stebbsy

Thank you for your responses, that answers my question.

lorenzo22

Martin
You keep saying that you have be earning over £21,000 to start paying.
This is not quite correct. The £21000 is is split down into a monthly/weekly earnings equivalent and if your weekly or monthly pay that week or month is over this amount you will pay a bit of your loan back. This may by caused by you getting bonuses or overtime that week or month which puts you over the pro-rata split. Hope this is helpful

Ed-1

lorenzo22 wrote: »

Martin
You keep saying that you have be earning over £21,000 to start paying.
This is not quite correct. The £21000 is is split down into a monthly/weekly earnings equivalent and if your weekly or monthly pay that week or month is over this amount you will pay a bit of your loan back. This may by caused by you getting bonuses or overtime that week or month which puts you over the pro-rata split. Hope this is helpful

HOWEVER: If your annual income for the tax year isn't over the threshold you can claim the repayments back.

dazalock

Hi Martin.

I have a problem that I hope you can help with or at least make other aware. I am a OU student, I have completed 340 credits of the 360 I need for my Honours Degree. As I only need 20 credits to complete my degree I opted, having taken advice from the OU, to complete 2 10 credit courses. The OU allowed me to register for the first 10 credit course and as far as I was aware all was good as the loan seemed to have gone through. On applying for my second 10 credit course I was informed that I would not get funding as this was below the 25% intensity rule, they said I needed to do at least 30 credits per academic year to get funding.. Obviously this is crazy as that would mean I would be incurring debt needlessly. Also they were now saying I needed to pay for the previous 10 credit course. So now I am in the position of not only having to find £450 to complete my degree, I also have to find a further £450 for the course I started (and have completed early). HELP!

[Deleted User]

anyone received their September grant yet,my DGS is in Budapest atm and is worrying as its not come through yet and his house rent is due on Thursday

Rachiedabbler70

JackieO wrote: »

anyone received their September grant yet,my DGS is in Budapest atm and is worrying as its not come through yet and his house rent is due on Thursday

Hi JackieO

My DS's grant and loan doesn't get paid until 28th September and apparently takes 4 days to clear so perhaps your DGS's isn't due yet. Must admit seems really late seeing as he moves into halls of residence on 27th September and needs to be able to buy food and pay rent. I'm assuming I'll have to use my credit card to pay everything up front and then he pay my bill when it comes in.:eek:

Beagles4ever

My son just started Uni with 3 year course normal 9K a year fees and 4k a year maintenance loan. His grandparents are giving him 6k a year over next 3 yrs, should he pay part of his loan off or keep loan and repay when earning but use the 18k over 3 years to save eg in new Help to Buy ISA released end of this year? Any guidance appreciated