Quote:
Originally Posted by jfman
I’m sure they do, but I’m quite sure nobody chooses to earn £22 000 for the sole purpose of avoiding paying back their student loans at a marginal rate of 9% of earnings above that threshold.
If the economic environment means a lot of graduates are earning below this level then that’s the general economy that’s the problem not any individual who went to uni.
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Not sure if there is any logic/reason for anyone to earn below £22k (actually, £19k or £25k, depending on which Plan you are on, but let’s keep using £22k as a baseline) to avoid paying 9% of their salary over £22k (as you don’t pay anything on the first £22k even if you earn above the threshold).
If they earned £25k, after paying (approx) 20% tax, 11% NI, and 9% student loan repayment, they would still be £1800 pa, or £150 per month, better off.
The proposition does not stand up...