As soon as you leave college, you simply repay if you are earning above ?2,144 four weeks (equal to ?25,725 per year) after which it really is fixed at 9% of all you make above that. The income limit are increasing to ?26,575/yr from 6 April 2020. (NB for Scottish students, the threshold where repayments begin is ?18,935 in 2019/20).
Earnings suggest hardly any money from work or self-employment and, in a few situations, earnings from investment and 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 true point notably:
You repay if you earn ?27,000 in a year, what do?
The solution is ?115, as ?27,000 is ?1,275 over the limit and 9% of ?1,275 is ?115.
And you repay if you earn ?35,000, what do?
The solution is ?835. ?35,000 is ?9,275 over the limit and 9% of the is ?835.
‘ just just How on the planet will my kid have the ability to afford to repay these debts when they get yourself a defectively having to pay task? ‘