Student Loans - England Flashcards
Why might it be better for parents to pay for uni fees?
education & maintenance are exempt from IHT
If parents have an IHT liability paying for fees could reduce their estate
This would save children paying 9% interest over 40 years
With regards to student loans in England what is the criteria from 2023?
9% interest payable on income above the threshold of £25,000 (used to be £27,295)
Max term is 40 years - so after 40 years if it’s not paid back it is wiped out (used to be 30 years)
Interest payable is inline with RPI (used to be RPI plus 3)
With regards to student loan repayment what income is counted towards the threshold!
Earned income
Interest
Dividends
With regards to student loans in England from 1 Aug 2023 what plan will student be on?
Plan 5
Before this it was plan 2
With regards to student loan in England what dictates the level of payment?
The level of income after student graduates not the loan amount.
Once a student has income of £25,000 plus the will start to pay back their student loan on the excess above this threshold