Student Loans - England Flashcards

1
Q

Why might it be better for parents to pay for uni fees?

A

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

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2
Q

With regards to student loans in England what is the criteria from 2023?

A

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)

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3
Q

With regards to student loan repayment what income is counted towards the threshold!

A

Earned income
Interest
Dividends

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4
Q

With regards to student loans in England from 1 Aug 2023 what plan will student be on?

A

Plan 5
Before this it was plan 2

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5
Q

With regards to student loan in England what dictates the level of payment?

A

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

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