1 - Income Tax (K)

Question 1

Of the following, which are students not liable to pay back:
tuition fee loans, maintenance loans and postgraduate loans, grants and bursaries.

Answer 1

Grants and bursaries

Question 2

For the employed, how are student loan repayments collected?

Answer 2

Through PAYE with income tax and NICs

Question 3

What is the income threshold for when a student loan needs to start being paid, and when is the first payment usually taken?

Answer 3

Income exceeds £25,000 and April, after the course ends

Question 4

If a student doesn’t finish their course, are loans still repayable?

Answer 4

Yes

Question 5

How are student loan repayments calculated?

Answer 5

9% of income in excess of the £25,000 threshold

Question 6

What term are student loans paid back over and how is the interest rate set?

Answer 6

40 years, RPI