My Early Retirement Story - Another Perspective

shinytop

Student Loan repayments is tied in to PAYE / tax system essentially so if you are not employed in UK then "unemployed" is likely to be the correct answer to the question being asked.

I think you still have to pay; there is a different form if you work overseas. The method of collection and the threshold is different.

Nual

My youngest is a Dr, currently working in NZ, and she certainly has to pay back her loan.

happyandcontented

fred246 wrote: »

It's not that simple though. It's not a normal debt. You may never pay it back. I was speaking to someone who's son works in financial markets on the other side of the world. He gets a letter from the UK government and he just says he's unemployed. Apparently the UK government has no enforcement powers abroad. If they couldn't work or had long term sickness they just don't pay it back. I could have paid the fees up front but I thought my children were better having the money and just think of them paying a higher rate of income tax or graduate tax.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678668&_dad=portal&_schema=PORTAL

westv

I've never really understood why it's not "student tax" or similar rather than "loan". Then people might be less likely to get their knickers in a twist over "interest" and "debt".
A tax that runs until you are 55 (?) and only affects income over £25k or so.

JoeEngland

Nual wrote: »

My youngest is a Dr, currently working in NZ, and she certainly has to pay back her loan.

Maybe she's more honest than people working in financial markets!

Anonymous101

westv wrote: »

I've never really understood why it's not "student tax" or similar rather than "loan". Then people might be less likely to get their knickers in a twist over "interest" and "debt".
A tax that runs until you are 55 (?) and only affects income over £25k or so.

Its a loan and not a tax because of the differences in the value of the education each student receives. A medic studying for 5-7 years will incur much more costs than a standard undergraduate studying for 3 so should pay the equivalent back.

If value wasn't recouped appropriately then you're just encouraging manipulation of the system to a point where students could remain in full time education perpetually.

IMO the whole University system needs an overhaul. It doesn't provide value for the students yet is pushed as some sort of fast track to high earnings.
It keeps the unemployment figures low and while people are in debt it also keeps them paying taxes for longer so I can understand why its pushed so much.