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Income-Contingent Repayment
Income-contingent repayment is an arrangement for the repayment of a loan where the regular (e.g. monthly) amount to be paid by the borrower depends on his or her income. This type of repayment arrangement is mostly used for student loans, where the ability of the new graduate borrower to repay is usually limited by his or her income. Australia After a period of free tertiary education Australia introduced the Higher Education Contribution Scheme (HECS) in 1989. Through the scheme the government sought to recover some of the costs of higher education by charging tuition fees and allowing students to defer payment of these fees until the student's income reached a certain level. Their HECS debt could be repaid through the tax system. United Kingdom Income-contingent repayment has been available for student loans in the United Kingdom since 1998. The Student Loans Company (SLC) that manages student loans for students studying in the UK makes sure that the repayment of loans on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tertiary Education Fees In Australia
Tertiary education fees in Australia are payable for courses at tertiary education institutions. Responsibility for fees in vocational education and training (VET) rests primarily with the state and territory governments, while fees policy in higher education is largely controlled by the Commonwealth Government. For most domestic students in higher education, the Commonwealth Government provides loans, subsidies, and/or social security welfare payments & benefits to relieve the cost of tertiary education. These benefits are not available to international students. Some domestic students are supported by the government and are required to pay only part of the cost of tuition, called the "student contribution", and the government pays the balance. Some government supported students can defer payment of their contribution as a HECS-HELP loan. Other domestic students are full fee-paying (non-Commonwealth supported) and do not receive direct government contribution to the cost ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Student Loans In The United Kingdom
Student loans and grants in the United Kingdom are financial instruments offered to students to fund their study. The loans in use today are income contingent, meaning that the repayment amounts vary depending on the income of the borrower. They are also written off after a set period, depending on the type of loan. Student loans were first introduced in 1990, and a single system was in effect across the entire country until 2012. Tuition fees were greatly increased that year amid public opposition to the decision, and the loan system has seen repeated attempts at reform since. These reforms were not always applied in the devolved regions, which has had the effect of stratifying the system and adding significant complexity. There are currently five different student loan "plans" available for students studying today, depending on location and the type of course, with a large variation in cost, terms, and structure. In general, the newer systems are less generous than the older s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pay-as-you-earn Tax
A pay-as-you-earn tax (PAYE), or pay-as-you-go (PAYG) is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined on tax returns. PAYE may include withholding the employee portion of insurance contributions or similar social benefit taxes. In most countries, they are determined by employers but subject to government review. PAYE is deducted from each paycheck by the employer and must be remitted promptly to the government. Most countries refer to income tax withholding by other terms, including pay-as-you-go tax. United Kingdom Origins Devised by Sir Paul Chambers, PAYE was introduced into the UK in 1944, following trials in 1940–1941. As with many of the United Kingdom's institutional arrangements, the way in which the state collects income tax through PAYE owes much of its form and structure to the peculiarities of the era in which it was devi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
HM Revenue And Customs
His Majesty's Revenue and Customs (commonly HM Revenue and Customs, or HMRC, and formerly Her Majesty's Revenue and Customs) is a department of the UK government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. HMRC was formed by the merger of the Inland Revenue and HM Customs and Excise, which took effect on 18 April 2005. The department's logo is the Tudor Crown enclosed within a circle. Departmental responsibilities The department is responsible for the administration and collection of direct taxes including Income Tax, Corporation Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT), indirect taxes including Value Added Tax (VAT), excise duties and Stamp Duty Land Tax (SDLT), and environmental taxes such as Air Passenger Duty and the Climate Change Levy. Other aspects of the departmen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Income Tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income. The tax rate may increase as taxable income increases (referred to as graduated or progressive tax rates). The tax imposed on companies is usually known as corporate tax and is commonly levied at a flat rate. Individual income is often taxed at progressive rates where the tax rate applied to each additional unit of income increases (e.g., the first $10,000 of income taxed at 0%, the next $10,000 taxed at 1%, etc.). Most jurisdictions exempt local charitable organizations from tax. Income from investments may be taxed at different (generally lower) rates than other types of income. Credits of various sorts may be allowed that reduce tax. Some jurisdictio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
National Insurance
National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of NI contributions establishes entitlement to certain state benefits for workers and their families. Introduced by the National Insurance Act 1911 and expanded by the Attlee ministry in 1948, the system has been subjected to numerous amendments in succeeding years. Initially, it was a contributory form of insurance against illness and unemployment, and eventually provided retirement pensions and other benefits. Currently, workers pay contributions from the age of sixteen years, until the age they become eligible for the State Pension. Contributions are due from employed people earning at or above a threshold called the Lower Earnings Limit, the value of which is reviewed each year. Self-employed people contribute through a percentage of net profits above a threshold, which is reviewed periodically. Individuals may also make volunt ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tax Return (United Kingdom)
In the United Kingdom, a tax return is a document that must be filed with HM Revenue & Customs declaring liability for taxation. Different bodies must file different returns with respect to various forms of taxation. The main returns currently in use are: *SA100 for individuals paying income tax *SA800 for partnerships *SA900 for trusts and estates of deceased persons *CT600 for companies paying corporation tax *VAT100 for value added tax Income tax self-assessment Most employees paying tax under the PAYE system are not required to file a tax return, because the PAYE system operates to withhold the correct amount of tax from their wages or salaries. However, some taxpayers, including employees, may have income that has not been taxed at source and needs to be declared to HMRC, usually by submitting a self assessment tax return. Legally, a tax payer is obliged to submit a tax return when HMRC request one by sending a notice to file a tax return, either because the tax payer ha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Erudio Student Loans
Erudio Student Loans is a consortium formed by debt collectors Arrow Global and private equity firm CarVal Investors in 2013. The firm was the successful bidder in an auction to buy non-performing U.K. student loans in 2013, paying £160m to buy debts of £890m taken out between 1990 and 1998. Of the loans purchased, 46% of the borrowers were earning below the amount at which they were required to make payments, 14% were making payments and 40% were not making any payments. ''The Independent'' noted that debt collectors Arrow performed very poorly during the credit crunch and that similar organisations had a reputation for unwarranted threatening letters, phone calls and visits; David Willetts had ignored the implications for former students, his prime objective was to reduce public debt. CarVal Investors, a private equity firm, provided most of the cash. Criticism Since taking over the loans, Erudio has faced criticism from current loan holders and also from financial comment ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Income-driven Repayment
Income-based repayment or income-driven repayment (IDR), is a student loan repayment program in the United States that regulates the amount that one needs to pay each month based on one's current income and family size. The phrase is an umbrella term for four specific repayment plans that are available within the William D. Ford Federal Direct Loan Program (FDLP, FDSLP, Direct Loan) and the Federal Family Education Loan Program (FFEL). The four plans are: * Income-Based Repayment (IBR) * Pay As You Earn (PAYE) * Saving on a Valuable Education (SAVE), which automatically replaced Revised Pay As You Earn (REPAYE) in 2023 In 2024, the SAVE program was frozen, pending lawsuits. * Income-Contingent Repayment (ICR) Mechanics Payments under the IBR Plan are 10% or 15% of discretionary income but never exceed the 10-year standard repayment amount. Whether a borrower pays 10% or 15% of discretionary income depends on when the borrower first started borrowing student loans. * 10% ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Student Loans In The United States
In the United States, student loans are a form of Student financial aid (United States), financial aid intended to help students access higher education. In 2018, 70 percent of higher education graduates had used loans to cover some or all of their expenses. With notable exceptions, student loans must be repaid, in contrast to other forms of financial aid such as scholarships and bursary, bursaries which are not repaid, and Grant (money), grants, which rarely have to be repaid. Student loans may be discharged through bankruptcy, but this is difficult. Research shows that access to student loans increases credit-constrained students' degree completion and later-life earnings while having no impact on overall debt. Student loan debt has proliferated since 2006, totaling $1.73 trillion by July 2021. In 2019, students who borrowed to complete a bachelor's degree had about $30,000 of debt upon graduation. Almost half of all loans are for graduate school, typically in much higher a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
