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Confusion

Hi,

So I had a question in regards to student finance England.

Let's say in the future for whatever reason I inherit money. Assuming I have no job at that point, will I have to repay my student finance loans from that money? (Savings in my bank account)

Or is student finance repayment purely related to whether you go to work or not and if you earn over 21K?

Thank you
(edited 7 years ago)
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Avatar for Klix88
Klix88
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Original post by starshine909
Hi,

So I had a question in regards to student finance England.

Let's say in the future (God forbid) something happens to my parents and I inherit their money. Or for whatever reason I receive money. Assuming I have no job at that point, will I have to repay my student finance loans from that money? (Savings in my bank account)

Or is student finance repayment purely related to whether you go to work or not and if you earn over 21K?

Thank you


Repayments purely come from your income, not your capital, so your initial inheritance wouldn't be touched. 'Income' can be wages, interest on savings, rental income from property you own, etc.

From the official Student Loan Company site
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678784&_dad=portal&_schema=PORTAL...
For example, if you were earning £30,000 per year:
1. 30,000 – 21,000 = 9,000
2. 9% of 9,000 = 810
3. 810 / 12 = 67.5
4. Round down

So your monthly student loan repayment would be £67.


If your inherited money generates more than £21,000 a year in interest, you will be asked to make repayments on any interest earned over £21,000 that year. So if you got, say, £30,000 a year in interest, the above calculation would apply. £810 a year won't be a lot of money with that level of income.

Your inheritance won't be looked at as a lump sum, with your total Student Finance debt being demanded from that money in one go.
(edited 7 years ago)
Original post by Klix88
Repayments purely come from your income, not your capital, so your initial inheritance wouldn't be touched. 'Income' can be wages, interest on savings, rental income from property you own, etc.

From the official Student Loan Company site
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678784&_dad=portal&_schema=PORTAL...


If your inherited money generates more than £21,000 a year in interest, you will be asked to make repayments on any interest earned over £21,000 that year. So if you got, say, £30,000 a year in interest, the above calculation would apply. £810 a year won't be a lot of money with that level of income.

Your inheritance won't be looked at as a lump sum, with your total Student Finance debt being demanded from that money in one go.



Ah okay, thank you

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