Student Loans - admin errors meaning I'm not repaying

rsnapey

I graduated in 2002 with a student loan debt of 12k. I;ve been earning over 15k (the repayment threshold) since June 2004, but I've not once had a student loan deduction from my salary. This was convinient for a while whilst I was earning below 20k, but I can now afford the repayment quite comfortably. I'm just a little worried what the Student Loan Company might do if I contact them - will I be in trouble for not mentioning it before? Has anyone experienced this before?

Kavanne

When I started working in Feb I filled out a form about my new employment and sent it to them, then in April they started making deductions from my salary. Give them a ring, they may be able to send you out a copy. They sent it to me automatically because I finished uni.

minimoocow

I was the same - but I let them know within a couple of months - it took them another 4 to get around to sorting it and taking it from my salary. I asked what would happen with the 6 months I hadn't paid. They said nothing and they haven't ever asked for back pay. (I graduated in 2002 same as you so don't think they will now!)

HOWEVER, same happened to my husband and as we then rented a house we had to do a tax return - we were a little surprised that it then told us he owed another £200 for the SL (The tax was less than £50!!!)

Don't know what would happen in your situation as its been so long but I'd guess you would probably be ok if you haven't got to do a tax return.

MMC

CLAPTON

I know is absolutely crazy but the UK tax system works on the basis that people are basically honest.

It's your responsibility to tell your employer that you have a student loan and they should contact the HMRC and then start deducting payments from your salary.

minimoocow

Clapton,

I agree with your point about people being honest however they don't make it easy. In my case I did tell my employer - they told me HMRC had not told them to deduct anything yet so they couldn't but they probably would be told in a month or so.

After a couple of months of nothing I asked my employer for the HMRC contact details. Called them. They said the SLC hadn't told them so they couldn't do anything. Called SLC. They said "oh yes we'll get onto it!"

Hence the 6 month delay!!!

Obviously most people wouldn't have bothered making several phone calls and spending ages on hold only to pay money back . . .

rsnapey

Cheers all - I'll see what they say. Fingers crossed. They seem more than a little incompetent - My last statement from them in September 2007 was for tax year ending April 2006 - so it was actually 18 months out of date. Strange. Also my girlfriend has had deductions taken previously when she was earning under 15k but got an annual bonus. However since she earned above 15k again (for a couple of months now) they haven't taken anything. You'd have thought the repayment side of it would be one thing they get right

tis_3

rsnapey wrote: »

I graduated in 2002 with a student loan debt of 12k. I;ve been earning over 15k (the repayment threshold) since June 2004, but I've not once had a student loan deduction from my salary. This was convinient for a while whilst I was earning below 20k, but I can now afford the repayment quite comfortably. I'm just a little worried what the Student Loan Company might do if I contact them - will I be in trouble for not mentioning it before? Has anyone experienced this before?

Exactly the same thing happened to me. I was okay at the start but got a bit worried about the debt and having contacted them and nothing happening, I set up a standing order from my account.

However, I soon cottoned on to the fact that when it comes out of your salary, there is a chance (v. slim though and I have not been able to check) that the payments for student loans come from your salary pre-tax, so less money missing from pay.

I wrote about 3-4 letters and harassed them. They were awful.....no wonder people don't pay the loan back, but I got it sorted in the end.

I've just gotten details to the new repayments website. Doesn't do much, but at least you can see your balance....small steps!!

rsnapey

Update: I rang the student loan company and apparently I'm one of a small number of people whose student loan accounts can't match up with the Inland Revenue details, so they can't take any payments from me. They said it was nothing to worry about and I can make voluntary payments in the meantime. I wonder why it's taking them over 4 years to sort it all out though?