Student loans

in_debt_again_but_dealing_with_it

Have just had a look at the student finance website and repayment for student loans are 9% of anything earned over £15,000 ie: john is earning £17,000 he will pay the slc 9% of £2,000 pa = £180p/a = £15 p/m. Interest is charged at inflation and added at the end of each financial year. Can't find anything regarding what to do if you're not working, will keep looking.

scootw1

in_debt_again_and_stupid wrote:

Have just had a look at the student finance website and repayment for student loans are 9% of anything earned over £15,000 ie: john is earning £17,000 he will pay the slc 9% of £2,000 pa = £180p/a = £15 p/m. Interest is charged at inflation and added at the end of each financial year. Can't find anything regarding what to do if you're not working, will keep looking.

this is different to when I took out the loan then as I had a set amount of £40 a month to pay

GPark

How you pay back your loan depends on when you started higher education.

If you started before September 98, you pay back by direct debit,once you reach the income threshold, which is about £24k. But you have to pay back over a set time, usually 48 or 60 months. So you pay back the same amount each month if you are earning £25k or £50k. They simply take what you owe, and the expected interest and divide by either 48 or 60 months.

if you started after September 98, you pay back through paye, and it is a % of what you earn over £15k.

Sparkly

Hi 'in debt again and stupid' - the rules are different depending on when you took out the first loan - pre or post 1998. Regardless, you need to keep up to date with the paperwork and make sure fill in and return anything. They seem to make the assumption after a few years that unless you provide the information to say you are earning under the threashold, they decide you can pay them back.