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Student loans repayment

Hi

This may be wishful thinking, but student loans are repayed at 9% of what you earn over 15k and I'm wondering if the deductions are made before tax or after?

e.g. If i earn 25k I get 2083 a month, which is 833/month over the 15k limit. 9% of this is about £75, but is this taken off my £2083 or the ~£1550 I'd probably get after tax+NI?

Comments

  • It's calculated from the gross figure, so yes, on £25k you'd be paying £75 a month.
  • Yes I understand how it's calculated, but is it deducted from the gross or net figure?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    The 9% is calculated on your gross income so if you earn 25000 then they will deduct 9% of 10,000 = 900 per annum or 75 per month

    Sadly the deduction comes out of your net pay after tax and NI, just like any other loan
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