Student Loans

[Deleted User]

Thank you all so much. You're very kind and helpful. Bit confused about the debt collection element. I thought that the loan payment was taken out of your salary before tax as soon as you hit £21K salary.

missbiggles1

Deleted_User wrote: »

Thank you all so much. You're very kind and helpful. Bit confused about the debt collection element. I thought that the loan payment was taken out of your salary before tax as soon as you hit £21K salary.

The poster was talking about the earler form of student loans (often called ("mortgage style loans") which existed in the 90s. You're correct about the way the current system works.

GwylimT

I don't know if this is still the case but when my son applied you could choose not to have your income assessed, in which case you were awarded the minimum loan amount.

Pixie5740

Deleted_User wrote: »

Thank you all so much. You're very kind and helpful. Bit confused about the debt collection element. I thought that the loan payment was taken out of your salary before tax as soon as you hit £21K salary.

Actually the student loan repayments from 1998 onwards are deducted after income tax and NI, not before.

[Deleted User]

Wow...you guys really know your stuff don't you? I have started reading about it but truth be told it makes my eyes glaze over. I can see the benefits to the loans now though, as opposed to me paying for her education from my income ( if i could).....Martin makes a great case FOR them...he's dead smart isnt he? ;-)

patanne

I suggest you read Martin's blog for the 14th December.

Re the debt collectors - the problems seem to be for those who are not in the PAYE system for one reason or another. Self employed, taking a break to have children, long term sick, that sort of thing.

[Deleted User]

Ah I see.....I'm wading my way through as much info as i can find...its a LOT!

missbiggles1

Deleted_User wrote: »

Ah I see.....I'm wading my way through as much info as i can find...its a LOT!

Good for you, but don't forget to get your daughter wading through it as well - she's the one who'll be borrowing and repaying the money so she needs to understand it rather more than you do.:)

jacksufc90

I'm into my second year after graduating in 2013, and on a PAYE system,
I started in 2009, so am on the £15,000 plus system, and currently pay back £57 a month (pro-rate against my income).

I would recommend taking the student loan out. I know it's daunting the amounts, but it is there to help (even if the SLC can be like passing a kidney stone) but the repayment schemes are fairly favourable.

[Deleted User]

Thank you again...yes, my daughter is pretty clued up on it, I'm not ( yet!)

Thanks Jack...that's good to know.

Another question....student banking. Is it good to get a bespoke student bank account or doesnt it matter and should my daughter just stick with her Nationwide account?

Many thanks...your help is much appreciated