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  • FIRST POST
    • Jenbug
    • By Jenbug 11th Jun 17, 10:43 PM
    • 6Posts
    • 7Thanks
    Jenbug
    Student loans - repaying back too much.
    • #1
    • 11th Jun 17, 10:43 PM
    Student loans - repaying back too much. 11th Jun 17 at 10:43 PM
    In the last financial year I earnt £18,847.97 thus taking me over the threshold of £17450 to pay back my student loan.
    I would have been due to pay back £122 on the amount I earnt this year but due to having 2 months where I did a lot of overtime I have ended up paying £329 but the student loans company are saying they are entitled to keep the overpayment as I went over the threshold to start paying back my loan.
    Is this right? I can't find anything in my original agreement about it and it's frustrating as it means I suffer as some months I may only recieve £900 before tax from work but then if I can get overtime I can earn £1800 before tax so I feel if I am being penalised for not having a stable income month on month as if I did I would have only paid £122 over the year rather than £329!

    Any advice??
Page 1
    • daisy23169
    • By daisy23169 11th Jun 17, 11:21 PM
    • 28 Posts
    • 13 Thanks
    daisy23169
    • #2
    • 11th Jun 17, 11:21 PM
    • #2
    • 11th Jun 17, 11:21 PM
    I'm not 100% certain on this so I will double check tomorrow at work, but I believe that SLC will only refund overpaid deductions if you didn't meet the repayment threshold during the year (or if you've paid off the balance of your loan).

    Once your annual earnings go over the threshold then the deductions which have been made stand, even if they're higher than they would be if you calculated the amount due based on annual earnings rather than based on individual months.

    I can see why you're annoyed, it's an imperfect system.
    • Jenbug
    • By Jenbug 12th Jun 17, 12:35 AM
    • 6 Posts
    • 7 Thanks
    Jenbug
    • #3
    • 12th Jun 17, 12:35 AM
    • #3
    • 12th Jun 17, 12:35 AM
    Yes it almost puts me off doing any extra overtime in work as after tax and student finance I come out no better off sadly.
    • BrassicWoman
    • By BrassicWoman 12th Jun 17, 6:45 AM
    • 1,217 Posts
    • 4,932 Thanks
    BrassicWoman
    • #4
    • 12th Jun 17, 6:45 AM
    • #4
    • 12th Jun 17, 6:45 AM
    Yes it almost puts me off doing any extra overtime in work as after tax and student finance I come out no better off sadly.
    Originally posted by Jenbug

    You have less debt, so you are better off
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • Jenbug
    • By Jenbug 12th Jun 17, 9:38 AM
    • 6 Posts
    • 7 Thanks
    Jenbug
    • #5
    • 12th Jun 17, 9:38 AM
    • #5
    • 12th Jun 17, 9:38 AM
    Not really as I will be paying off my student loans for my entire working life but as with any debt it Should be worked out in relation to what you are earning. To loose an extra £200 due to just working a little more hours a month in order to try and pay off other debts when I am not due to pay that much to the student loans company no I am not better off for having paid them more money.
    • Ed-1
    • By Ed-1 12th Jun 17, 12:01 PM
    • 1,904 Posts
    • 1,013 Thanks
    Ed-1
    • #6
    • 12th Jun 17, 12:01 PM
    • #6
    • 12th Jun 17, 12:01 PM
    You have less debt, so you are better off
    Originally posted by BrassicWoman
    The Government's better off as they're the ones that will end up writing it off. As it's an income contingent loan (i.e. a capped time-limited tax) of 9% of earnings above a threshold the less you pay now the less you pay in total regardless of whether the 'debt' appears lower. In fact on the pre-2012 loans as the interest rate is below inflation, even if you earn enough to repay in full you're still better off delaying repayments.
    Last edited by Ed-1; 12-06-2017 at 12:52 PM.
    • Ed-1
    • By Ed-1 12th Jun 17, 12:03 PM
    • 1,904 Posts
    • 1,013 Thanks
    Ed-1
    • #7
    • 12th Jun 17, 12:03 PM
    • #7
    • 12th Jun 17, 12:03 PM
    In the last financial year I earnt £18,847.97 thus taking me over the threshold of £17450 to pay back my student loan.
    I would have been due to pay back £122 on the amount I earnt this year but due to having 2 months where I did a lot of overtime I have ended up paying £329 but the student loans company are saying they are entitled to keep the overpayment as I went over the threshold to start paying back my loan.
    Is this right? I can't find anything in my original agreement about it and it's frustrating as it means I suffer as some months I may only recieve £900 before tax from work but then if I can get overtime I can earn £1800 before tax so I feel if I am being penalised for not having a stable income month on month as if I did I would have only paid £122 over the year rather than £329!

    Any advice??
    Originally posted by Jenbug
    You haven't overpaid.

    Your repayment obligations are to pay 9% of your earnings over the pay period threshold. If you are paid monthly this threshold is the annual threshold divided by 12.
    • Mogley
    • By Mogley 12th Jun 17, 12:49 PM
    • 164 Posts
    • 161 Thanks
    Mogley
    • #8
    • 12th Jun 17, 12:49 PM
    • #8
    • 12th Jun 17, 12:49 PM
    Any advice??
    Originally posted by Jenbug

    The SLC deductions are correct as others have eluded to. My advice would be to take advantage of any salary sacrifice schemes available through your employer. Child care vouchers, pension salary sacrifice etc. reduce your taxable income but also the income threshold for student loan in the pay period. The savings for you would be some tax, NI and student loan deductions.
    No.25 for 2017 £1070/£4000 saved.
    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.
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