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> Tell me how this is different from the rest of the student loan industry. My student loan is until I've paid it all back, or I reach 65, or I die. It adds a t
by ProblemFactory 9y ago
> Tell me how this is different from the rest of the student loan industry. My student loan is until I've paid it all back, or I reach 65, or I die. It adds a top up to my income tax, taking 9% of everything over £17kpa earnt.
Student loan industry in the UK. In the US and most other places, income-based repayment is not a thing, the payments are due no matter how much or little you earn.
- sp332 9y agoI don't think that's accurate. When I graduated I got a zillion papers in the mail for applying for various hardship deferments and payment options. And then there's this https://obamawhitehouse.archives.gov/blog/2012/06/07/income-based-repayment-everything-you-need-know https://obamawhitehouse.archives.gov/blog/2012/06/07/income-... which is explicitly income-based.
- jfaat 9y agoIncome-based repayments are definitely 'a thing' in the US.
- bradleyjg 9y agoAt least for now the US does have several income based repayment plans. The best one for most circumstances is PAYE (pay as you earn). It requires payments of 10% of disposable income, i.e. dollars earned after 150% of the poverty line, and the debt is discharged after 20 years of payments or 10 years while working for certain government or non-profit entities. This program is partly the result of regulatory rule making and so could be sharply curtailed should the President or his underlings wish to do so.
- thatwebdude 9y agoThis occurs mostly in private student loans vs. federal ones. Private offers even fewer options than the federally mandated ones provide.