Student Loan Repayment Responsibility

butterface

Hi there, I graduated in 2005 with ~£8k of student loan from SLC. I've been in the same job for the last 2 years. I was under the impression that my loan repayments were coming from my salary before I received it, but it turns out this was not the case.

Should my employer have been sorting out these repayments? Am I in trouble for missing them?

Fire_Fox

You only start paying off your student loans once you are earning over £15k a year. It is your responsibility to ensure the Student Loans Company have an up to date postal address for you, and your responsibility to advise your employer than you have a student loan that needs paying. You will not be in any trouble as long as the Student Loans Company have not been trying to contact you at your last known address and getting no response. Remember, you have borrowed money from someone and it is only right that you keep them informed of all developments (new job/ address), just as you would a bank loan.

Beckymarshall07

Hello Fire Fox is right. Think you pay 3% of your earnings over 15k. When I started my new job recently they automatically came out so not sure if SLC debit your payments through tax NI system. I'd just give them a ring and see what they say. I wouldnt worry about it tho - I've got 16k debt and graduated 2004!

argood

Beckymarshall07 wrote: »

Hello Fire Fox is right. Think you pay 3% of your earnings over 15k. When I started my new job recently they automatically came out so not sure if SLC debit your payments through tax NI system. I'd just give them a ring and see what they say. I wouldnt worry about it tho - I've got 16k debt and graduated 2004!

It's 9% of what you earn over £15,000 (or £1250 per month). They should start automatically, however if they don't then contact SLC.

Borrowers enter repayment status the April following graduation/withdrawal. SLC send over batches of N.I. numbers to match people up on the tax system, then when the borrower earns over the threshold deductions begin. However if there's a problem matching you up with HMRC then your deductions won't start automatically.

If you've been consistently earning over the threshold but not repaying then don't worry. You won't be asked to pay a backdated lump sum, you'll just start repaying from zero.

butterface

Thanks for all the advice guys. SLC have my address fine, they sent my statements a couple of months ago after I phoned them and requested. I've been consistently earning over £15k, so I'll probably give them a call to check up. Thanks again :-)

lindsaym22

I´ve still got about 12k of debt from Uni.. I don´t know how it all built up!!! I don´t have anything to show for it either... I guess I used it for living expenses.. I didn´t like extravagantly though. I remember getting the repayment sheets through and thinking aaaaaaa I´m never going to earn enough to pay these off.. but it´s doable, just don´t worry about it

KPXA

Hi,

I'm in exactly the same situation.
They have my details but no deductions are being taken out.
Can I ring them to ask to start repayments. Scared they're gonna hit me with a lump sum request?

Loco

argood wrote: »

It's 9% of what you earn over £15,000 (or £1250 per month). They should start automatically, however if they don't then contact SLC.

I was initially under the impression that they take money once you earn over 15k..........but recently I took on a temping job for a few months and had some deductions taken off........but I did not earn over the 1250 a month as you say (I earned max 950 in 1 month and the other few months around 600).

I take it they might have made a mistake?

argood

Loco wrote: »

I was initially under the impression that they take money once you earn over 15k..........but recently I took on a temping job for a few months and had some deductions taken off........but I did not earn over the 1250 a month as you say (I earned max 950 in 1 month and the other few months around 600).

I take it they might have made a mistake?

Well, the mistake isn't on SLC's behalf. It's your employers payroll department. SLC don't make physical deductions from your wage, your employer does.

SLC just receive the money at the end of the tax year.

If your temping job was within this tax year then your deductions will most likely still be with your employer so they should be able to refund them if they have indeed taken them in error.

argood

KPXA wrote: »

Hi,

I'm in exactly the same situation.
They have my details but no deductions are being taken out.
Can I ring them to ask to start repayments. Scared they're gonna hit me with a lump sum request?

In my post above yours I wrote that people who don't start repaying immediately from the moment they earn over the threshold are not asked to repay a backdated lumpsum.

Ring them and ask them to send a start notification to your employer.

amy-jane_2

Hi, I am also in need of some student loan advice!
With the bank accounts having such low interest, I am wondering about paying some of my student loan off. I have finished my degree with £13,500 of debt. I am now doing a PGCE and getting about £50 a month interest.
Should I use my savings to pay some of this off?
I'd appreciate any help!