Student loans - do we have to pay it back?

[DMorgan]

I've just graduated from uni so I've got a lovely £19,000 debt to the student loans company. You hear all sorts of rumours about how much you've gotta earn before you pay it back etc. As poker is tax exempt does this mean that I technically am not earning anything and so I'm not liable to pay any of the money back?

There is obviously a moral issue here aswell. I'm not really trying to screw the taxpayer out of the money, just not sure where I stand.

Anyone else been in the same situation over the last few years/know what my repayment obligations are?

[Girgy85]

Get a job!

[KarmaDope]

I've just graduated from uni so I've got a lovely £19,000 debt to the student loans company. You hear all sorts of rumours about how much you've gotta earn before you pay it back etc. As poker is tax exempt does this mean that I technically am not earning anything and so I'm not liable to pay any of the money back?

There is obviously a moral issue here aswell. I'm not really trying to screw the taxpayer out of the money, just not sure where I stand.

Anyone else been in the same situation over the last few years/know what my repayment obligations are?

AFAIK, no obligations. However, if you can't show any income (benefits/part time work), the SLC do write to you and ask how you are funding your life.

[Jon MW]

...You hear all sorts of rumours about how much you've gotta earn before you pay it back etc....

lol, you've got all the paperwork - shouldn't you know how much you have to earn first? 

The SLC won't just ignore it, but basically you won't have to pay it back even if you got a part time job and had poker as your main income because it'd only be the part time job that counted.

[vegaslover]

I've just graduated from uni so I've got a lovely £19,000 debt to the student loans company. You hear all sorts of rumours about how much you've gotta earn before you pay it back etc. As poker is tax exempt does this mean that I technically am not earning anything and so I'm not liable to pay any of the money back?

There is obviously a moral issue here aswell. I'm not really trying to screw the taxpayer out of the money, just not sure where I stand.

Anyone else been in the same situation over the last few years/know what my repayment obligations are?

AFAIK no obligation as long as any paid employment remains below the annual threshold.
Must say though Dan you saying you not wanting to screw taxpayer is a bit lol when you have been playing/winning plenty high enough not to have any debts incurred.
What is it with students??....lol

[treefella]

 Would your balance in a bank account come into the equation regardless of whether you may or may not have a job ? So lets say you had 100k in your bank but no job would you be forced to pay it back ? Discounting the ethics of course.

[Jon MW]

Would your balance in a bank account come into the equation regardless of whether you may or may not have a job ? So lets say you had 100k in your bank but no job would you be forced to pay it back ? Discounting the ethics of course.

Interest on savings is still your income, so in that sense it's taking in to account, but the actual capital isn't.

[DMorgan]

Must say though Dan you saying you not wanting to screw taxpayer is a bit lol when you have been playing/winning plenty high enough not to have any debts incurred.
What is it with students??....lol

£19,000 is still a very significant sum of money. Just because I'm a winning player doesn't mean that I can afford that sort of outlay. We all still have rent, bills etc. to pay...

[vegaslover]

Well obvo, but should add beer money to that list
When I was a student I had a mortgage etc but didn't rack up any debt, just worked 90 hour weeks for 3 years

[Jon MW]

Well obvo, but should add beer money to that list
When I was a student I had a mortgage etc but didn't rack up any debt, just worked 90 hour weeks for 3 years

I don't know when you went but if you were able to get a student loan and didn't then it's likely that this just represents poor financial management.

If you went when student loans were available but didn't have to pay tuition fees then it was definitely a bad decision.

[vegaslover]

Well obvo, but should add beer money to that list
When I was a student I had a mortgage etc but didn't rack up any debt, just worked 90 hour weeks for 3 years

I don't know when you went but if you were able to get a student loan and didn't then it's likely that this just represents poor financial management.

If you went when student loans were available but didn't have to pay tuition fees then it was definitely a bad decision.

No they were not available to me.

[Jon MW]

Well obvo, but should add beer money to that list
When I was a student I had a mortgage etc but didn't rack up any debt, just worked 90 hour weeks for 3 years

I don't know when you went but if you were able to get a student loan and didn't then it's likely that this just represents poor financial management.

If you went when student loans were available but didn't have to pay tuition fees then it was definitely a bad decision.

No they were not available to me.

ok then, but there was a critical element in your post so I was just pointing out that because of the structure of your debt with the Student Loans Company then it is often the more rational decision to take it then it is to avoid it - even if it would be possible for you to avoid it

[Free_Rollin]

Dan, afaik, the obligation stands when you are in employment and are earning in excess of £15k. Since, your source of income comes from poker, I believe they will then treat this as your job. I think this situation is quite new, so even if you get in touch with the SLC I doubt they will give you a concrete answer straight away over the phone.

The usual practice is that they deduct money from your pay packet, just like paying NI for example. However, since you may not be actually making any money say one month, will they still expect money that month? I think it's best to call them and see what the situation is.

[Jon MW]

Dan, afaik, the obligation stands when you are in employment and are earning in excess of £15k. Since, your source of income comes from poker, I believe they will then treat this as your job. I think this situation is quite new, so even if you get in touch with the SLC I doubt they will give you a concrete answer straight away over the phone.

The usual practice is that they deduct money from your pay packet, just like paying NI for example. However, since you may not be actually making any money say one month, will they still expect money that month? I think it's best to call them and see what the situation is.

They do deduct it with your pay packet, they deduct it along with the tax calculations, if your living is 'poker player' you don't get a pay packet.

But it's not a bad idea to check with them obviously.

EDIT: your first line, "when you are in employment", a poker player isn't employed by anyone and isn't self employed

[Free_Rollin]

Repaying student loans

Student loans have to be paid back - but you don’t have to start making repayments until you’ve left your course and are earning over £15,000.

Once your earnings reach this threshold, you’ll pay back nine per cent of whatever you earn over £15,000.

Taken from the SLC (http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/Gettingstarted/DG_171572)

They use the word 'earning' over £15k. I guess this turns into a legal matter, and whether a poker player could get away with not paying back at all. However, since Dan has said he doesn't want to screw the tax payer over (well played), then I guess he could start paying 9%, if his earning is over £15k.