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    • femster82
    • By femster82 13th Sep 17, 11:12 AM
    • 18Posts
    • 0Thanks
    femster82
    Student Loan - Pay in full to avoid 24 month rule
    • #1
    • 13th Sep 17, 11:12 AM
    Student Loan - Pay in full to avoid 24 month rule 13th Sep 17 at 11:12 AM
    Hi,

    Hopefully someone can advise on this as it's doing my head in

    I have a student loan with a balance I calculated at £3305 and I am paying around £215 per month through my salary. It was a loan taken in 2000 to 2004.

    I work away from home a lot and I am about to hit the "24 month Rule" which mean my expenses will be shown in my wage slip even though they just cover the actual wrk expenses I have to pay. This causes a issue with student loan as they take out the % of salary no matter what.

    I was thinking of paying off my loan before I hit this issue in November but I have a concern about then continuing to take out money from my salary as I have heard so many stories of this happening?

    Also I read on this forum I could set up a direct debit to stop them from taking too much from my salary is this an option or just when you are near completion?

    Thanks
Page 1
    • Lokolo
    • By Lokolo 13th Sep 17, 2:47 PM
    • 19,820 Posts
    • 14,874 Thanks
    Lokolo
    • #2
    • 13th Sep 17, 2:47 PM
    • #2
    • 13th Sep 17, 2:47 PM
    As you are currently paying £215 and you have £3305 you should really already have phoned them and asked to switch to direct debit repayment.

    I would do this now. It will take around 1-2 months to update PAYE to stop taking payments, then in month 3 or 4 your direct debits will start.

    When you get close to £1,000 left, if you have the money I would then phone them up and ask them for a settlement figure to finish the loan off (this is what I did).
    • femster82
    • By femster82 13th Sep 17, 4:23 PM
    • 18 Posts
    • 0 Thanks
    femster82
    • #3
    • 13th Sep 17, 4:23 PM
    • #3
    • 13th Sep 17, 4:23 PM
    As you are currently paying £215 and you have £3305 you should really already have phoned them and asked to switch to direct debit repayment.

    I would do this now. It will take around 1-2 months to update PAYE to stop taking payments, then in month 3 or 4 your direct debits will start.

    When you get close to £1,000 left, if you have the money I would then phone them up and ask them for a settlement figure to finish the loan off (this is what I did).
    Originally posted by Lokolo
    Thanks, just did this and they set up a DD to start in December which is perfect. Like you said when I get to £1k I will probably pay it off as I'm trying to apply for a mortgage and any little helps.

    Glad I came on here for help.
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