Students loans earning

Plan 1 The earliest you’ll start repaying your student loan is the April after you leave your course. You’ll only start repaying your loan if your annual income is over £17,335. This amount changes on 6 April every year. You stop paying if your income drops below this amount. Plan 2 If you’re already studying, the earliest you’ll start repaying your student loan is April 2016 - even if you drop out of your course early. If you start studying in September 2015 or later, the earliest you’ll start repaying is the April after you leave your course. In either case, you’ll only start repaying your loan if your annual income is over £21,000. You stop paying if your income drops below this amount. Students must meet two eligibility requirements: personal eligibility and course/institution eligibility. Personal eligibility principally concerns the student's residency status. To achieve course/institution eligibility, the student must be studying for an undergraduate degree at a UK degree-awarding institution or other verified higher education institution (HEI). In addition, students on some teacher, youth and community worker courses are also eligible for SLC support.[13] From academic year 2016/17, students aged under 30 studying for a postgraduate Taught Masters at a UK degree-awarding institution or other verified HEI will also be eligible for a £10000 student loan.[14] Tuition fee loan[edit] All full-time students are entitled to a tuition fee loan which covers the full cost of the tuition fee. From the 2012/13 academic year, universities are entitled to charge up to £3,465 for pre-2012 students and up to £9000 for post-2012 students. Since academic year 2006/07 when variable tuition fees of up to £3000 were introduced by Tony Blair's Labour government, the maximum tuition fee had been increased each year with the April forecast for RPIX inflation for the following academic year. For academic year 2010/11 the maximum tuition fee had reached £3290[15] and in the 2011/12 academic year the tuition fee was raised again to £3,375. The "old system" maximum tuition fee was raised one last time for academic year 2012/13 to £3465, a level it has remained for subsequent academic years in England. For courses starting after 1st September in the academic year 2012/13 the maximum tuition fee cap was raised to a maximum of £9,000 per year for full time students and £6,750 for part time students where the HEI has an access agreement in place, and a maximum of £6000 and £4500 respectively where the HEI does not. Scottish and Welsh universities were also entitled to raise their tuition fees, however Scottish-domiciled students studying in Scotland are entitled to free tuition and the Welsh Assembly pays any tuition fees for Welsh-domiciled students over and above the "old system" cap as uprated by inflation - £3810 for academic year 2015/16.[16] Northern Ireland retained the existing post-2006 student loan system. Both pre-2012 and post-2012 maximum tuition fees have been frozen at 2012/13 levels in England since academic year 2012/13. Elsewhere the "old system" cap has continued to be uprated annually with the April forecast for RPIX inflation for the following academic year. Maintenance loan[edit] All eligible UK-domiciled students are also entitled to a maintenance loan, which is designed to help pay for living costs whilst at university. All students are entitled to a set amount, with those living at home entitled to less and those living away from home in London entitled to more. For the 2009/2010 academic year, the maintenance loan was set at £2,763 for students living at home; £4,998 for students living in London; and £3,564 for students living at universities elsewhere in the UK.[17] Students from low-income households may qualify for an increased maintenance loan and/or maintenance grant (for every £1 of maintenance grant received the maintenance loan entitlement reduces by £0.50). For the 2009/2010 academic year, students living at home were entitled to an extra £1,075 (bringing the total loan to £3,838); students living in London were entitled to an extra £1,940 (bringing the total loan to £6,928); and students living elsewhere in the UK were entitled to an extra £1,386 (bringing the total loan to £4,950). The precise threshold for qualifying as a low-income household varies depending on which country of the UK the student resides in, and is set between two bands, with very poor students receiving the full extra money and less-poor students receiving only a partial extra amount.[17] For "old system" (i.e. pre-2012) students and "new system" (i.e. post-2012) students in academic year 2014/2015, the maximum maintenance loan rates rose by 1% for students studying both in and outside of London. For post-2012 students in 2014/15, those living away from home studying outside of London could access maximum loans of £5,555 (up from £5,500 for 2013/14), while those living away from home studying in London could access maximum loans of £7,751 (up from £7,675 for 2013/14).[18] For academic year 2015/16, maximum maintenance loan rates for both pre-2012 and post-2012 students will rise by forecast RPIX inflation (3.34%). The post-2012 maximum maintenance loan (for students living away from home, outside London) will rise from £5555 to £5740 and the pre-2012 maximum maintenance loan (for students living away from home, outside London) will rise from £5000 to £5167. Maintenance grant[edit] As well as being entitled to an increased loan, students from low-income households are also entitled to a maintenance grant, which does not have to be repaid. Like the extra maintenance loan, the precise threshold for qualifying as a low-income household varies depending on which county of the UK the student resides in, and is set between two bands, with very poor students receiving the full grant and less-poor students receiving only a partial grant.[19] For the 2009/2010 academic year, students from England and Wales were entitled to a grant of up to £2,906; students from Scotland £2,105; and students from Northern Ireland £3,406.[17] Maximum maintenance grants in England were frozen at 2009/10 levels in academic years 2010/11 and 2011/12. The 2012 Higher Education reforms in England brought a higher maximum maintenance grant of £3250 in 2012/13 for "new system" students and the maximum pre-2012 maintenance grant for "old system" students was increased by inflation for the first time in 3 years from £2906 to £2984. Maintenance grants on both systems were uprated by forecast RPIX inflation (3.2%) in academic year 2013/14 and by 1% in academic year 2014/15. For academic year 2015/16 maintenance grants on both systems will be frozen at 2014/15 levels: the post-2012 maintenance grant being frozen at £3387 and the pre-2012 maintenance grant being frozen at £3110. Other grants[edit] The SLC provides other grants, such as the Special Support Grant which is available for students on benefits.[19] However, the tuition fee loan, maintenance loan and maintenance grant are by far the most common assistance that the SLC provides. On the "old system" (pre-2012) higher education institutions themselves charging the maximum tuition fee are legally obliged to give a non-repayable bursary worth a minimum of 10% of the tuition fee to students in receipt of a full maintenance grant.[20] On the "new system" (post-2012) no such requirement exists, however those institutions charging more than the basic fee level of £6000 (full-time) need to include some support for disadvantaged students in their access agreements which need to be approved by OFFA. 3. What you pay You pay back 9% of your income over the minimum amount of: £17,335 for Plan 1 £21,000 for Plan 2 Interest starts being added to your loan from when you get your first payment. How much you pay depends on which plan you’re on. Plan 1 Your income per year Monthly repayments £17,335 and under £0 £20,000 £23 £25,000 £61 £30,000 £98 £50,000 £248 Interest on Plan 1 You currently pay interest of 0.9% on Plan 1. Plan 2 Your income per year Monthly repayments £21,000 and under £0 £25,000 £30 £30,000 £67 £50,000 £217 Interest on Plan 2 While you’re studying, interest is inflation plus 3%. Income Interest rate £21,000 or less Inflation £21,000 to £41,000 Inflation plus up to 3% Over £41,000 Inflation plus 3% The Student Loans Company has more information on how they calculate interest. If you have 2 or more jobs Your employers will deduct repayments from your salary - but only for the jobs where you earn over the minimum amount. HMRC may send you a tax return to make a self assessment of the repayments you owe for the whole year. You’ll need to pay 9% of all your income over the threshold - but any repayments you’ve already made from your salary will be deducted from this. Keep all your payslips and P60 - you’ll need them if you claim a refund. If you’re an employee and you do a tax return You might end up paying your loan back sooner if your income from savings and investments is over £2,000 a year.