Student Loan Repayment - Advised to DD not Salary

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HampshireH
HampshireH Posts: 4,477 Forumite
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in Student MoneySaving
Evening,

I received a letter from the SLC this week advising that my repayments will end on the next 2 years and to consider setting up a DD or clearing the balance to ensure I don't over pay.

I have no issue setting up a DD. However I wanted to know of others experience as my own experience is that the SLC is slow and often this causes problems.

I'm worried I will stop the payments direct from my salary but still end up overpaying if they don't stop in time. And/or miss a payment due to lack of communication from the SLC once those payment stop.

Probably worrying about nothing I know. I have just £1800 left to pay.

Comments

  • silvercar
    silvercar Posts: 46,960 Ambassador
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    The only way to stop payments direct from your salary is by the slc instructing this. If you don't set up a DD the payments will continue, even after you have cleared all the debt. The safest was is to agree a DD while you still owe money. That was the payment deductions stop and you are in control of the DD from the bank. You can monitor the DDs and notify the bank to stop paying them when you calculate the debt is paid.

    In short setting up a DD now puts you in control. Leaving the salary deductions run on, puts no one in control and you can expect an overpayment that you need to grab back.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    This was discussed on Moneybox on Radio 4 yesterday (apparently, I didn't actually listen to it myself), the episode can be found here

    http://www.bbc.co.uk/programmes/b092hsw3/segments
  • Mogley
    Mogley Posts: 250 Forumite
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    I am currently in my final 3 months of paying by direct debit. I set it up later than is recommended with less than a year to go on my repayments.


    As long as you keep SLC informed of your payments already taken from your salary in this tax year (they may want to see payslip evidence), re-paying by an agreed direct debited amount ensures that you will not overpay the student loan.


    I will know this for sure in December but my experience with the SLC regarding this so far has been positive.
    You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.
  • lika_86
    lika_86 Posts: 1,772 Forumite
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    Mogley wrote: »
    As long as you keep SLC informed of your payments already taken from your salary in this tax year (they may want to see payslip evidence), re-paying by an agreed direct debited amount ensures that you will not overpay the student loan.

    Hah, you say that, I paid a lump sum in the last three months of mine to get it done with and despite paying what the SLC quoted me as my outstanding amount, they still had to get in touch half a year later to let me know I'd overpaid. They're idiots.
  • HampshireH
    HampshireH Posts: 4,477 Forumite
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    Thank you all. I will be calling them next week to arrange the DD instead.
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