News

**MSE Natasha** · 25-08-2009, 12:44 PM

This thread is specifically to discuss the content of the guide:

Repaying Student Loans

To discuss or ask a question about the guide: click reply

clairemc · 25-08-2009, 10:01 PM

hi I am currently paying off my pre 1998 student loans and only have around 6 months left. what will this change mean in relation to the remaining sum? will they take the same amount or less each month &/or will I pay it off quicker?
thanks

Lokolo · 25-08-2009, 10:16 PM

Quote:

Originally Posted by clairemc

hi I am currently paying off my pre 1998 student loans and only have around 6 months left. what will this change mean in relation to the remaining sum? will they take the same amount or less each month &/or will I pay it off quicker?
thanks

They will take the same amount but it will be reduced quicker as no interest is being added.

mangadarkogirl · 26-08-2009, 10:14 AM

The whole 'only pay it off when earning £15,000+' is a total con. I have never earned that much but have paid several times to the SLC through my wage. When questioned about this, the SLC say it does not go by salary but by monthly income....I don't see anywhere that is advertised!!

Lokolo · 26-08-2009, 10:17 AM

Quote:

Originally Posted by mangadarkogirl

The whole 'only pay it off when earning £15,000+' is a total con. I have never earned that much but have paid several times to the SLC through my wage. When questioned about this, the SLC say it does not go by salary but by monthly income....I don't see anywhere that is advertised!!

Its done the same as PAYE tax. If you were paid yearly you would only pay back with £15k+, but as you are paid monthly its worked out on PAYE (just like tax normally is!).

mangadarkogirl · 26-08-2009, 10:18 AM

It's not a tax thought, and the SLC clearly state that you only pay back when on 15K a year.

Lokolo · 26-08-2009, 10:28 AM

Quote:

Originally Posted by mangadarkogirl

It's not a tax thought, and the SLC clearly state that you only pay back when on 15K a year.

http://www.direct.gov.uk/en/Educatio...98/DG_10034867

No problem.

As I said, its worked out PAYE, just like tax is.

unwina · 26-08-2009, 10:36 AM

I have an intersting dilema, my freinds son has never had a job since leaving uni a few years ago. However, job is a subjective term, hes been gambling on various sites and is winning considerable ammounts on a monthly basis.

Since gambling in the UK is tax free and therfore is never declared how does this stack up with the student loans system.

Just wondered, I know gamblers probably never really win but since he never pays tax/ni etc he earns in the region of £3/4000 a month clear thats not to be sniffed at. My son keeps saying hes gonna give up his job and try this one day.

Does anyone know what the position is on this.

regards,
Alan.

Beccasavinglots · 26-08-2009, 11:05 AM

Does anyone else who took a loan out between 1998 - 2005 feel we are the real losers? We were the first 'trial' for the Government even though we protested against loans loudly through student protests. We missed out on all the former bursaries and the few that have now been introduced. Now we are missing out on the negative interest and we will have to keep paying our loans off until we finish or reach 65. Those taking loans after that period get them wiped after 25 years!

Not fair i say

Lokolo · 26-08-2009, 11:08 AM

Quote:

Originally Posted by Beccasavinglots

Does anyone else who took a loan out between 1998 - 2005 feel we are the real losers? We were the first 'trial' for the Government even though we protested against loans loudly through student protests. We missed out on all the former bursaries and the few that have now been introduced. Now we are missing out on the negative interest and we will have to keep paying our loans off until we finish or reach 65. Those taking loans after that period get them wiped after 25 years!

Not fair i say

Hey I took mine out in 07/08 and the grant and extra loan limit was £30k then, now its £70k!

mangadarkogirl · 26-08-2009, 11:22 AM

I took mine out in 2005 and I have no decrease in interest or bursary.grant.

Stinkybell · 26-08-2009, 11:28 AM

Quote:

Originally Posted by mangadarkogirl

The whole 'only pay it off when earning £15,000+' is a total con. I have never earned that much but have paid several times to the SLC through my wage. When questioned about this, the SLC say it does not go by salary but by monthly income....I don't see anywhere that is advertised!!

Because they take it direct from your salary, they automatically take repayments if your monthly gross is over £1250. Even if your annual pay is well under £15000, this can happen because of stuff like overtime and bonuses. You can write to them with a copy of your P60 each April and they will pay you back direct into your bank account if your annual earnings is indeed under £15000

MrsManda · 26-08-2009, 11:41 AM

Quote:

Originally Posted by Stinkybell

Because they take it direct from your salary, they automatically take repayments if your monthly gross is over £1250. Even if your annual pay is well under £15000, this can happen because of stuff like overtime and bonuses. You can write to them with a copy of your P60 each April and they will pay you back direct into your bank account if your annual earnings is indeed under £15000

This is a much better system in that otherwise at the end of the financial year you could end up landed with a great big bill to pay immediately.

MrsManda · 26-08-2009, 11:46 AM

Quote:

Originally Posted by mangadarkogirl

When questioned about this, the SLC say it does not go by salary but by monthly income....I don't see anywhere that is advertised!!

You haven't looked at the repayments T&Cs or their website then.
How much do I repay?

You will repay 9% of anything you earn over the income threshold.

The UK income threshold is:

£15,000 gross per year
£1,250 gross per month
£288 gross per week

For example, if you earn £1,650 per month, you would pay 9% of £400, or £36 per month to your student loan.

Claiming back student loan repayments if you earned less than £15,000 in the tax year

It is possible that you had a student loan deduction in a pay period where you earned over the monthly or weekly threshold, but over the whole year your income did not exceed £15,000. This might happen if you receive a bonus payment or work overtime.

In this situation you will be able to apply to us for a refund of the repayments you have made in that year. However, we will not make a refund unless you ask for one.

You may decide you do not want a refund, in which case you will pay off your loan more quickly and pay less interest on the outstanding balance.

VikkiLee · 26-08-2009, 11:54 AM

Hi - my loans were sold off by the Student Loans Company to a company called Honours Student Loans. Will I still benefit from the -0.4% interest rate?

Oldernotwiser · 26-08-2009, 11:55 AM

Quote:

Originally Posted by Beccasavinglots

Does anyone else who took a loan out between 1998 - 2005 feel we are the real losers? We were the first 'trial' for the Government even though we protested against loans loudly through student protests. We missed out on all the former bursaries and the few that have now been introduced. Now we are missing out on the negative interest and we will have to keep paying our loans off until we finish or reach 65. Those taking loans after that period get them wiped after 25 years!

Not fair i say

Student Loans were introduced before 1998 and the repayment conditions on these "mortgage style" loans are far tougher than in your time, although the threshold is higher.

davidbsc · 26-08-2009, 5:32 PM

I'm making a claim for jobseekers allowance and wondering about paying off my student loan - otherwise I have over ten thousand pounds in savings, and over a five thousand pound limit, you are docked a pound a week for every £250 that you have, so unless you can happen to find a savings account that pays 20% interest, it seems worth paying it off. What do you think?

meghan_l · 26-08-2009, 6:19 PM

One thing the guide doesn't cover is the SLC being atrocious at starting repayments. I've been sent forms, confirmed that these have been received, and still my company have not been sent the start notice by HMRC. Why on earth not? Does anyone know how I contact the HMRC to get them to do this? Their website is extremely unhelpful, and when I asked a random helpline for help they just gave me the number of the SLC.

I recognise that I'm not really losing out by not starting repayments, but I'd like to reduce my loan anyhow! Help?

Oldernotwiser · 26-08-2009, 8:31 PM

Quote:

Originally Posted by davidbsc

I'm making a claim for jobseekers allowance and wondering about paying off my student loan - otherwise I have over ten thousand pounds in savings, and over a five thousand pound limit, you are docked a pound a week for every £250 that you have, so unless you can happen to find a savings account that pays 20% interest, it seems worth paying it off. What do you think?

If you use your savings to pay off your student loan it will be treated as deprivation of capital and you'll be assessed for benefits as if you still had the money. It's not a good idea..

DrRusty · 26-08-2009, 9:30 PM

Assomeone with a minimal load that was taken out in 1994, the thought that the loan will be reduced further is good news.

However, a while ago I recall (probably as I am paying the loan off reguarly now) the loan was "sold" to Thesis Services and I now pay them.

I just can't see them reducing the interest rate to -0.4% as they are a commercial outfit?

Any ideas if they are likely to reduce the rate as well or am I going to be a loser due to my loan being sold?