When do loans start to be repaid if doing a Phd?

Hi. My daughter has a plan " student loan and finshed her Masters degree in 2022. She is now doing a Phd that finishes end 2025 and receives a stipend which I know is not income. My question is if she were to have taxable income in the current year of over the £28,000 threshold woudl she have to repay her undergraduate student loan? I'm thinking of paying her a dividend from my company thinking she is a non-tax payer so at worse would just pay the 8.75% dividend tax, but not if it trigger a student loan repayment.

Fundamentally the question is are the start date of her student loan Apr 2023 when her undergraduate finished or is that start date pushed back to apr26 when her Phd finishes? If the latter she could receive income without triggering a repayment.

Thanks for any advice
Mike

Reply 1

Drew SLC

Official Rep

Hi there,

If the student starts making over the threshold then she would start repaying their undergraduate loan and postgraduate loan back to us as it is looked at separately from their PHD.

Thanks, Drew