Plan 5 student loan question

cheese321

I'm 36 and have a place on a graduate entry medicine course. I would be 40 when I graduate. I understand the new plan 5 student loans are not written off until 40 years. Is it possible I could be repaying the loan up until I'm 80, if my income or pension were over the threshold? I'm debating whether to take up my offer due to these money worries and other concerns. Thank you

Ed-1

cheese321 said:

I'm 36 and have a place on a graduate entry medicine course. I would be 40 when I graduate. I understand the new plan 5 student loans are not written off until 40 years. Is it possible I could be repaying the loan up until I'm 80, if my income or pension were over the threshold? I'm debating whether to take up my offer due to these money worries and other concerns. Thank you

Generally it's only income subject to National Insurance Contributions that is subject to student loan repayments. Pension income isn't subject to NICs so is also not subject to student loan repayments.

silvercar

Ed-1 said:

cheese321 said:

I'm 36 and have a place on a graduate entry medicine course. I would be 40 when I graduate. I understand the new plan 5 student loans are not written off until 40 years. Is it possible I could be repaying the loan up until I'm 80, if my income or pension were over the threshold? I'm debating whether to take up my offer due to these money worries and other concerns. Thank you

Generally it's only income subject to National Insurance Contributions that is subject to student loan repayments. Pension income isn't subject to NICs so is also not subject to student loan repayments.

No guarantee On what the rules could be in 20 years time.

Ed-1

silvercar said:

Ed-1 said:

cheese321 said:

I'm 36 and have a place on a graduate entry medicine course. I would be 40 when I graduate. I understand the new plan 5 student loans are not written off until 40 years. Is it possible I could be repaying the loan up until I'm 80, if my income or pension were over the threshold? I'm debating whether to take up my offer due to these money worries and other concerns. Thank you

Generally it's only income subject to National Insurance Contributions that is subject to student loan repayments. Pension income isn't subject to NICs so is also not subject to student loan repayments.

No guarantee On what the rules could be in 20 years time.

Absolutely but that would be a big change to the underlying structure. Of course, it would have to change if e.g. National Insurance was abolished.

At the rate we're going at, we'll be on Plan 39 by then!

silvercar

Ed-1 said:

silvercar said:

Ed-1 said:

cheese321 said:

I'm 36 and have a place on a graduate entry medicine course. I would be 40 when I graduate. I understand the new plan 5 student loans are not written off until 40 years. Is it possible I could be repaying the loan up until I'm 80, if my income or pension were over the threshold? I'm debating whether to take up my offer due to these money worries and other concerns. Thank you

Generally it's only income subject to National Insurance Contributions that is subject to student loan repayments. Pension income isn't subject to NICs so is also not subject to student loan repayments.

No guarantee On what the rules could be in 20 years time.

Absolutely but that would be a big change to the underlying structure. Of course, it would have to change if e.g. National Insurance was abolished.

At the rate we're going at, we'll be on Plan 39 by then!

I was thinking that pensions could become NI-able, or at least included within the threshold for loan repayment. After all, with the repayments extending to 40 years far more people are likely to be within the category of paying back loans while pensioners than at present.