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What is the APR on that "only 10% of your income?" It isn't really "generous" if 10% only ever pays the years interest without repaying the original sum. In th
by UnoriginalGuy 11y ago
What is the APR on that "only 10% of your income?" It isn't really "generous" if 10% only ever pays the years interest without repaying the original sum.
In the UK the interest rate is 1.5%. You're forced to repay a minimum based on your income. Below £17,335 (approx. $26,500) you pay nothing, and as your income grows as does the minimum repayment (so people making more repay faster).
PS - UK University is also much cheaper. It varies by course, but £9K/year ($13.7K) is typical. If I look at the first State College on Wikipedia (University of Alabama) $19,652/year (based on 4x semesters, inter-state resident) is what they charge. Then there is other fees: $325 mandatory dining fee, $400 enrollment fee, $100 parking, and so on. I've also heard that a US student pays $1K in books (!) which is insane (I purchase three books total which cost about £200 over the entire course).
- bradleyjg 11y agoInterest over your payments are waived for the first three years, after that it is capitalized. After twenty years, ten if you work in the government or charitable sector, the remaining balance is forgiven. The current interest rate for new undergraduate debt is 4.29%.
- thechao 11y agoYou're taxed on the balance as income. It's easier to negotiate with the IRS, though.
- bradleyjg 11y agoThere are regulations that say the public service forgiveness (10 year) is not taxable income. The ordinary forgiveness (20 year) is taxable under current law, but IBR/PAYE hasn't been around long enough for anyone to have triggered it yet. There are proposals to exempt it.