Even if you gain funding for a phd, you still have to pay for other student debts...
Even if you gain funding for a phd, you still have to pay for other student debts. For example, you have to pay for your BSc, your MSc and your old undergrad student loans, so how do people deal with this?
Pay for it with your funding? I didn't realise you can to pay back student loan while a PhD student, are you sure?
Generally PhD funding is paid as a tax-free educational grant, rather than as taxable income.
If it isn't taxable income it doesn't count towards the £15,000 repayment threshold for student loans. So unless you had a part-time job paying more than £15,000 pa you wouldn't be repaying yourr student loan.
If it isn't taxable income it doesn't count towards the £15,000 repayment threshold for student loans. So unless you had a part-time job paying more than £15,000 pa you wouldn't be repaying yourr student loan.
Only in certain and very specific cases does PHD funding exceed the minimum threshold to have to start paying back the debt. The living costs stipend is normally in the 12-14 thousand range max, depending on location.
The threshold to start paying back undergraduate debt is 15000. IIRC repayments are 9% of anything earned above the first 15000. So if you make 16k you will pay 9% of 1000 (£90).
The stipend can, rarely, be higher - for instance with something highly quantitative and/or medical or immediately industrial, which has attracted a priority interest from several parties. I've seen research into the effect of chemical warfare with a stipend of 19k for instance. However I doubt people in such flush circumstances would complain about having to make (small) student loan repayments.
Obviously if you took out a bank loan to pay for a masters that would need to be repayed, but thats no different from any other bank loan. Masters funding is also available of course, albeit less so than for PHDs
** Edit As someone else has pointed the pHD funding does indeed normally come as a tax free grant. I had forgotten this. So unless you had the best part time job ever you wouldn't need to worry. Again though, you would still have to repay a bank loan taken for a Masters.
The threshold to start paying back undergraduate debt is 15000. IIRC repayments are 9% of anything earned above the first 15000. So if you make 16k you will pay 9% of 1000 (£90).
The stipend can, rarely, be higher - for instance with something highly quantitative and/or medical or immediately industrial, which has attracted a priority interest from several parties. I've seen research into the effect of chemical warfare with a stipend of 19k for instance. However I doubt people in such flush circumstances would complain about having to make (small) student loan repayments.
Obviously if you took out a bank loan to pay for a masters that would need to be repayed, but thats no different from any other bank loan. Masters funding is also available of course, albeit less so than for PHDs
** Edit As someone else has pointed the pHD funding does indeed normally come as a tax free grant. I had forgotten this. So unless you had the best part time job ever you wouldn't need to worry. Again though, you would still have to repay a bank loan taken for a Masters.
Dirks provides a pretty complete answer.
just to add one thing though:
you could pay installments at any time if you like, you would be foolish to as the student loan is the cheapest loan you will ever ever get and will probably go to zero interest or if we are very lucky, deflation soon.
just to add one thing though:
you could pay installments at any time if you like, you would be foolish to as the student loan is the cheapest loan you will ever ever get and will probably go to zero interest or if we are very lucky, deflation soon.
Ok so as one of those lucky people who wil be getting PhD tax free funding in excess of 20k I would like to just confirm that I won't have to pay back my student loan? Also is it definatly wise not to pay it back anyway?
EierVonSatan
Firstly how in blink did you get that much funding? To answer your question you don't have to pay back your student loan as a PhD student, and no it's not the most useful thing to do with your stipend to pay it off now imo.
It was really just a case of right place, right time! Its industry sponsered, it think its not THAT unusual in Computer Science. Ok thats good to know about the loan, I really am quite clueless when it comes to money, which is a worry cause i'm about to start having it.
EierVonSatan
Fair enough...well it will probably come as a shock then 
I know it did for me after 4 years of being very poor...I suspect you'll cope 
I know it did for me after 4 years of being very poor...I suspect you'll cope Haha, i'm already thinking of all the lovely things I can waste it on, first i'm buying a horse... then all my money will be gone and ill be poor again. The End.
".....and will probably go to zero interest or if we are very lucky, deflation soon."
Sorry, don't know how to quote properly.
If we do have deflation all that was said above about it not being a good idea to repay your student loan, including the quote, is complete rubbish!
If we have deflation you would be best advised to repay your loan as quickly as you can. But provided that we stay above say 1-0.5% inflation then do take your time to repay it, it really is bloody cheap.
Sorry, don't know how to quote properly.
If we do have deflation all that was said above about it not being a good idea to repay your student loan, including the quote, is complete rubbish!
If we have deflation you would be best advised to repay your loan as quickly as you can. But provided that we stay above say 1-0.5% inflation then do take your time to repay it, it really is bloody cheap.
ecos-gnomos
".....and will probably go to zero interest or if we are very lucky, deflation soon."
Sorry, don't know how to quote properly.
If we do have deflation all that was said above about it not being a good idea to repay your student loan, including the quote, is complete rubbish!
If we have deflation you would be best advised to repay your loan as quickly as you can. But provided that we stay above say 1-0.5% inflation then do take your time to repay it, it really is bloody cheap.
Sorry, don't know how to quote properly.
If we do have deflation all that was said above about it not being a good idea to repay your student loan, including the quote, is complete rubbish!
If we have deflation you would be best advised to repay your loan as quickly as you can. But provided that we stay above say 1-0.5% inflation then do take your time to repay it, it really is bloody cheap.
Oh god, its getting confusing, how do you find out the inflation? Has anyone written a computer program that will send out a "warning pay back loan!
" message when that happens? Someone should.So, both of my sons have just completed their masters degrees in chemical engineering. They have both accepted fully funded paid scholarships for PhDs and will be paid 22k each (including expenses). They are going to be living at home with us. Can they pay off their student loans during their 4 year PhD term then? They both owe£45,000 from 4 year masters (how much interest have they accrued during the 4 years in addition to the £45k already?)
Original post by Dirks
Only in certain and very specific cases does PHD funding exceed the minimum threshold to have to start paying back the debt. The living costs stipend is normally in the 12-14 thousand range max, depending on location.
The threshold to start paying back undergraduate debt is 15000. IIRC repayments are 9% of anything earned above the first 15000. So if you make 16k you will pay 9% of 1000 (£90).
The stipend can, rarely, be higher - for instance with something highly quantitative and/or medical or immediately industrial, which has attracted a priority interest from several parties. I've seen research into the effect of chemical warfare with a stipend of 19k for instance. However I doubt people in such flush circumstances would complain about having to make (small) student loan repayments.
Obviously if you took out a bank loan to pay for a masters that would need to be repayed, but thats no different from any other bank loan. Masters funding is also available of course, albeit less so than for PHDs
** Edit As someone else has pointed the pHD funding does indeed normally come as a tax free grant. I had forgotten this. So unless you had the best part time job ever you wouldn't need to worry. Again though, you would still have to repay a bank loan taken for a Masters.
The threshold to start paying back undergraduate debt is 15000. IIRC repayments are 9% of anything earned above the first 15000. So if you make 16k you will pay 9% of 1000 (£90).
The stipend can, rarely, be higher - for instance with something highly quantitative and/or medical or immediately industrial, which has attracted a priority interest from several parties. I've seen research into the effect of chemical warfare with a stipend of 19k for instance. However I doubt people in such flush circumstances would complain about having to make (small) student loan repayments.
Obviously if you took out a bank loan to pay for a masters that would need to be repayed, but thats no different from any other bank loan. Masters funding is also available of course, albeit less so than for PHDs
** Edit As someone else has pointed the pHD funding does indeed normally come as a tax free grant. I had forgotten this. So unless you had the best part time job ever you wouldn't need to worry. Again though, you would still have to repay a bank loan taken for a Masters.
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