When you leave college, you simply repay if you are making above ?2,144 a(equivalent to ?25,725 a year) and then it’s fixed at 9% of everything you earn above that month. The income limit will likely be increasing to ?26,575/yr from 6 2020 april. (NB for Scottish students, the limit where repayments begin is ?18,935 in 2019/20).
Profits suggest hardly any money from work or self-employment and, in certain instances, profits from investment and cost cost savings.
Then lose your job or take a pay cut, your repayments drop accordingly if you’ve started repaying the loan, but. To labour the point notably:
In the event that you make ?27,000 in per year, just what would you repay?
The solution is ?115, as ?27,000 is ?1,275 over the limit and 9% of ?1,275 is ?115.
And in the event that you make ?35,000, just what would you repay?
The solution is ?835. ?35,000 is ?9,275 over the limit and 9% of this is ?835.
‘ just How on earth will my son or daughter have the ability to manage to repay these debts when they get yourself a badly having to pay task? ‘
This panicked question is tossed in the light of the required repayments at me by many parents – and it’s really important to examine it.
Some body on the lowest wage will be asked to repay small or very little.