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Higher education

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student finance- if you just work part time when qualified, how to pay back

14 replies

purple15 · 12/06/2012 09:47

hi I am 41 years old and thinking of doing the social work degree. If once qualified I just work part time, and do not quite earn the £20,000 how do you go on paying the loan back when the threshold is £20 k ?
Many thanks

OP posts:
RockChick1984 · 12/06/2012 13:46

If its your first degree, and you are earning under the threshold to repay (I thought it was higher from this academic year though, around £24k?) you don't have to start repaying it. You can choose to make some payments though as far as I know, but no obligation to do so. Once you are over the threshold, if pai through PAYE the money will be deducted with tax and NI.

purple15 · 12/06/2012 13:56

What if I never earn over the threshhold and stay as a part time worker ? How does that work ?

OP posts:
RockChick1984 · 12/06/2012 14:04

After a certain number of years the debt is written off, not sure how long though, I think it's about 35 years Smile

purple15 · 12/06/2012 14:08

thanks for that. Trust me to be thinking of uni, the year everything increases.

OP posts:
RockChick1984 · 12/06/2012 15:12

Same here, I'm starting an OU degree this September.

titchy · 12/06/2012 16:58

If you never earn over the threshold you never pay it back.

purple15 · 12/06/2012 18:39

that does not sound right titchy, if you never earn over the £20 k you dont pay back ? You will end up owing loads, with the price of tutuion now.

OP posts:
RockChick1984 · 12/06/2012 22:47

Titchy is right, as I said above the debt is written off after a certain number of years.

Itwillendinsmiles · 13/06/2012 08:36

Titchy is quite right. If you don't earn above the repayment threshold you make no repayments and anything outstanding is written off after 30(?) years.

I'm a mature student, planning to work in the third sector and according to the calculator on the BBC website will make no repayments!

The way I view it, my peers who went to uni when aged 18 or so had no loans so not paying mine back simply means I'm having the same benefits as them. :)

www.bbc.co.uk/news/education-14785676#student_finance_form

boomting · 13/06/2012 16:03

Indeed, if you don't earn over £21k, then you don't have to pay anything back. You repay at a rate of 9% of anything over £21k that you earn, so for instance if you earned £30k, then you would pay 9% of £9k = £810pa = £67.50.

If you never earn over £21k, then you never repay a penny. Anything that you have not repaid after 30 years is wiped off, and student finance doesn't affect your credit rating.

boomting · 13/06/2012 16:04

PS repayments are done via the PAYE system.

Don't forget that natural wage inflation over the years will eventually push you over £21k, as that threshold doesn't increase.

sashh · 15/06/2012 08:13

What if I never earn over the threshhold and stay as a part time worker ? How does that work ?

It's written off when you retire.

Dropdeadfred · 15/06/2012 08:19

It's written off from 35 years after the April after graduation in my case

clickybird · 16/06/2012 22:59

It gets written off and you'll never repay anything at all if you work p/t or are a sahm. I'm starting a creative writing degree next year as it's something that interests me but I plan to be a sahm afterwards and maybe do some p/t work, so I'm not worried about the debt at all.

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