loans question

Natzdance

Hope someone can help, being a student a friend asked me a student loan question, and to be honest i have no idea!

they are a married couple with kids and the wife is at university 3days a week, if she gets a student loan 1) does she pay it back from the gross salary (ie before tax) and 2)is it possible for the husband to pay it off from his salary if the wife isn't working?

thanks all

george_2

Natzdance wrote:

Hope someone can help, being a student a friend asked me a student loan question, and to be honest i have no idea!

they are a married couple with kids and the wife is at university 3days a week, if she gets a student loan 1) does she pay it back from the gross salary (ie before tax) and 2)is it possible for the husband to pay it off from his salary if the wife isn't working?

thanks all

1. Nope!
2. Nope!

Screw you over every way! Repayments are after Tax and NI contributions so no saving there, secondly you only actually have to make repayments once earnings are above a certain amount (£16k at the moment I think). If you not earning more than that, you pay nothing, but the loan accumulates interest anyway. Her husband could make additional payments to the Student Loan Company if they wished, but there is no compulsory payment

stuwilky

Repayments are calculated on gross
(ie before tax and ni is deducted - but i think thats what george meant as it would be better if they based it on net income, and start at a threshold of £15k earnings.

Savvy_Sue

stuwilky wrote:

Repayments are calculated on gross
(ie before tax and ni is deducted - but i think thats what george meant as it would be better if they based it on gross income, and start at a threshold of £15k earnings.

Is it my brain, or is Stuwilky not making sense here? Should that second gross really be a net?

stuwilky

Savvy_Sue wrote:

Is it my brain, or is Stuwilky not making sense here? Should that second gross really be a net?

Spot on. Just testing. I wasnt really half asleep! Honest.