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Student Loan Repayments
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So I have a student loan (post-2013) and I work on commission, which means my pay varies every month. Which means there are some months when I pay back A LOT of my student loan, and other when I pay back very little.
This doesn't seem fair.
The way tax works with commission earners makes sense - you get taxed appropriately for that month but then get a rebate at the end of the financial year if you have (inevitably) paid to much or too little due to the inconsistency of pay. However comparing that to student loan, you don't get a rebate. Because it's a loan.
So by the end of the year i may have only actually earned a small/average salary, but because I have had a few larger pay cheques, I have paid back more student loan than someone on the same salary (not on commission).
Is this right?
Can anything be done to control the amount of student loan I am actually paying?
This doesn't seem fair.
The way tax works with commission earners makes sense - you get taxed appropriately for that month but then get a rebate at the end of the financial year if you have (inevitably) paid to much or too little due to the inconsistency of pay. However comparing that to student loan, you don't get a rebate. Because it's a loan.
So by the end of the year i may have only actually earned a small/average salary, but because I have had a few larger pay cheques, I have paid back more student loan than someone on the same salary (not on commission).
Is this right?
Can anything be done to control the amount of student loan I am actually paying?
0
Comments
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You can reclaim student loan overpayments.
Its wrong if it doesnt work out at 9% of earnings over £21,000, how much will you earn and how much student loan will you pay?0 -
You'll pay off the loan quicker. Meaning you will be debt-free sooner than the other person.
Be happy that you are paying it off faster and carry on.Goals
Save £12k in 2017 #016 (£4212.06 / £10k) (42.12%)
Save £12k in 2016 #041 (£4558.28 / £6k) (75.97%)
Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)0
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