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Petition re. Student Loans Interest
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ka7e
Posts: 3,130 Forumite
Did you know that all deductions for repayment of Student Loans made from graduate's earnings are held by the Inland Revenue for up to 1 year before being handed over? Effectively, this means the IR earns interest on the repayments, whilst the Student Loan remains unpaid and accruing interest!
There is an on-line petition asking for the repayments to be credited monthly instead of annually http://petitions.pm.gov.uk/Student-loans/, , once you sign you have to click on a link sent to your email address to confirm your signature.
(I just wish the petitioner had used "Spellcheck"!)
There is an on-line petition asking for the repayments to be credited monthly instead of annually http://petitions.pm.gov.uk/Student-loans/, , once you sign you have to click on a link sent to your email address to confirm your signature.
(I just wish the petitioner had used "Spellcheck"!)
"Cheap", "Fast", "Right" -- pick two.
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Comments
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Another petition!Gone ... or have I?0
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Hi ka7e
You are incorrect with your comments. I used to work for the department that details with repayments through your salary at Student Loans.
Let me explain.
Each month your employer takes your National Insurance, Income Tax and Student Loans Repayments.
AT THE END OF THE TAX YEAR ONLY - your employer completes the paperwork to HM Revenue and Customs (HMRC) and pays the cheque for all employees working at the company for National Insurance, Tax and Student Loans.
So, the person earning any interest is your employer!
Next, HMRC split the cash among the NI, Tax and Student Loans depending on the paperwork for each employee and this is applied to your tax records. HMRC then pass the Student Loan Repayments over to SLC.
The money is then applied to your account and at the end of the month, the system will go back and re-calculate any interest that has been applied to your account (or it will just calculate the interest) and will prepare to have the statement printed.
As a borrower you are not charged any extra interest due the money being held by your employer for the course of the tax year.
Hope this sets it straight for you.
Glasgow Paul0 -
Thanks, Glasgow-Paul.
Got the information from a student forum, I'll go and post your explanation there."Cheap", "Fast", "Right" -- pick two.0 -
just one thing:
your employer does not benefit from the interest.
while its correct that the paperwork (well electronic transfer) is done at the end of the tax year, the employer actually pays the HMRC monthly.0 -
Yeah i heard about this on facebook theres going to be a march on for it.Poverty 2012 - F**K My low wage!0
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10x Glasgow_Paul and Clapton... I got an e-mail regarding this from a friend earlier on today with a link to the petition as well... didnt sign the petition though untill I had further information... (could and probably was simply another chain letter)0
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I have signed the petition, again thro a facebook thing. more worryingly though, I have had reports of medics' student loan repayment admin crisis where they have had the money taken out of their account as usual but the student loans company says they havent paid and there have been probs proving that they had. Anybody with any repayment problems would be really interested to hear from you as I'm a trainee journalist thinking of writing an article on it.0
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kittycatface wrote: »I have signed the petition, again thro a facebook thing. more worryingly though, I have had reports of medics' student loan repayment admin crisis where they have had the money taken out of their account as usual but the student loans company says they havent paid and there have been probs proving that they had. Anybody with any repayment problems would be really interested to hear from you as I'm a trainee journalist thinking of writing an article on it.
maybe i'm being a bit naive here, but wouldn't a (trainee) journalist do some proper research like phoning / writing to the SLC to find out the actual facts?0 -
I see the payslips where I work. Those liable to repay student loans have a deduction shown on their payslip which says "Student Loan Deduction". Our payroll people send us a breakdown of what we need to send to HMRC: this shows the totals for NI, PAYE and Student Loans. At any given time the employee should be able to 'prove' that loans repayments have been deducted, and their HR or payroll department should be able to 'prove' that payments have been sent to HMRC.kittycatface wrote: »more worryingly though, I have had reports of medics' student loan repayment admin crisis where they have had the money taken out of their account as usual but the student loans company says they havent paid and there have been probs proving that they had.
If that's not enough for SLC, they need to specify what it is they're after ...Signature removed for peace of mind0
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