Student Loan - smaller payments?

katyshaw

Hi

I recently started work as a lecturer (meaning I had to do a BA, and MA, a PGCE and a PHD to get my job!) and have a large student loan (£13k). Now I have started work the SLC are taking nearly £200 a month from me, even though I would actually like to pay less. I know it a debt but the interest is so low I think I could use the extra money. Does anyone know if you can reduce your payments and whether its a good idea to do this?
Thanks

Northern_girl_2

Hi Katy,

I'm assuming that it is a student loan from the student loan company for your BA rather than a career development loan or similar to fund you postgrad studies.

Assuming it is the student loan company then £200 is rather alot. You need to pay the minimum amount but £200 a month would equate to a salary of approx £40,000. Unless you have the best paid first lecturing post in the world then you won't be on that salary and in which case should be able to reduce payments.

The student loan company normally just take that minimum amount unless instructed otherwise so you will need to call and find out why they are taking so much.

CLAPTON

what sort ot loans have you

missgiggles2008

Student loans is usually about 9%.

Yes £200 is alot, and you would need to be earning the £40k a year. I know someone who is on roughly £30,500 a year and pays back £160 ish a month.

Cest la vie - i have a student loan too - alot of people are in the same boat me dear

miss giggles 2008

slummymummyof3

You have my sympathies too! I owe £10k on my student loan.

katyshaw

Yes I am on about 30k but in the south that amounts to very little, especially without London extra. Will look into seeing if I can get them reduced. Thanks!

Oldernotwiser

On £30 k you should be paying back £112.50 per month, not £200!

birduk

Katy, when did you start your first course? Is it an old or new-style loan?

I suspect given all the courses you have done it may be old (1997 or earlier?), in which case the amount is fixed, it is NOT proportional to your income like the new ones (1998 or later).

argood

I'll just reiterate what others have said here.

If you're one of the post-1998 ICR loans, then you should be repaying a fixed 9% of your income above the monthly threshold of £1250 (before tax) or £15,000 per annum. If your wage is £30,000 as you say, then your monthly repayments should be £112.50 as stated above.
If any more is being taken from your wage every month then you need to speak to your Payroll department as they are the ones making the deduction from your wage packet every month.

If, however, you have one of the pre-1998 loans you will be paying a fixed amount every month based on the balance of your loan. The SLC calculate how much you repay every month on the basis of a 5-year repayment timescale, taking into account changes in the interest rate each year.
You are able to appeal the amount that you repay in this case if you can provide proof of indebtedness to other bodies that are substantially affecting your standard of living.

I hope this helps, but please feel free to PM me if you need further help.