Finishing student loan payments

[Deleted User]

The time is near - I've nearly paid off my student loan. I should get my annual statement from the student loans company this April and I expect I'll only have a couple of hundred pounds left to pay. I'd rather not see ninety quid a month deducted from my payslip anymore and would rather just pay what I owe. Then.. I'll be debt free! :j

Has anyone done this? Do the inland revinue continue to deduct or did they stop quickly?

melancholly

no idea about the IR - but congratulations on paying it off!

[Deleted User]

Cheers melancholly. I've been living pretty frugally after graduating in order to pay back my loan and save for a deposit on a house. PS. Anyone want a website and help me save more? https://www.kirwilliam.co.uk. You've gotta try.

I have wondered how much people pay back on their student loans. I started repaying in 2003 and it's been between 65 and 90 pounds (as my wages have gone up, thankfully), how much does the 'average' new graduate pay back per month.

psilvester

I have been doing some research on this matter, i am about to finish my third and final year and have been trying to calculate how soon i can pay off my student loan. Now it appears that from 2005/2006 onwards the amount that graduates pay off has been decreased. A graduate earning £22000 a year will pay back £630 per year compared to 2004/2005 when they paid back just over £1000 a year (source http://www.listentotaxman.com/). So paying back a loan of £12500 at the minimum amount will take nearly 20 years. I am aiming to pay mine back in 4, providing i can get on a graduate placement for this September

Montymoo_2

How on earth have you managed to pay it off? I graduated in 2002 and am no where near paying it off!

[Deleted User]

Erm... I only finished with 5 grand debt. It's not quite as bad as a lot of other people. Thanks mum and dad! I did pay my own way through a masters (3 grand fees for 1 year) with no external help.

I've also managed to save 13 grand towards a deposit. Like i say, I've earnt extra making websites and not really having holidays abroad (thank goodness for fun work trips). I don't drive (in london, are you kidding?) and have an average salary job.

ftbworried

Does anyone here really worry about paying their student loan off? I mean, to me it's just a small amount of money that comes out of my wages before I get them- like a higher rate of tax. Because I never have it - i dont miss it. Also, they cant come and reposess your house if you lose your job/ get a pay reduction...so I don't really see it as a debt- more a higher rate of tax.

[Deleted User]

86 pounds a month is still money I could be spending elsewhere. It's a over 1000 pound a year, and since it's paid after tax, I have to earn about 1500 a year to pay for it. I'm considering the end of payments as a payrise.

pcyam

Graduated in 2002 and paid off about 5k now, the amounts that come out of my salary varies each month, sometimes its £40-£50 but ive had about £200-300 taken off in some months (which is a pain), but i make extra payments in some months via credit card (just to earn some points) or you can choose to pay via debit card/direct debit.


But to finish off the loan completely you need to contact Student Loans Company and they will tell you your balance on their systems and tell you to minus what has been deducted from your salary as they do not receive this till the end of each tax year. also contact people in the finance company you work at to let them know, but you may have one deduction after paying off your loan but can claim this back from the loan company. there has been a few stories where people who had finished paying off with a lump sum that the deductions had still been coming out for a few months and had to claim back from the loans company and had taken ages, and some didnt have any problems at all. (my sister paid them with a lump sum once she could afford it and had no trouble with them at all-fingers crosssed i never do).

For more details go one their website which is https://www.slc.co.uk or contact them on

Student Loans Company Limited
100 Bothwell Street
Glasgow
G2 7JD
Tel: 0800 40 50 10

topdollar

if you make voluntary payments using credit card to earn cashback or points, does the SLC charge a fee to use the credit card?

Thanks

Montymoo_2

ringo_24601 wrote:

Erm... I only finished with 5 grand debt. It's not quite as bad as a lot of other people. Thanks mum and dad! I did pay my own way through a masters (3 grand fees for 1 year) with no external help.

I've also managed to save 13 grand towards a deposit. Like i say, I've earnt extra making websites and not really having holidays abroad (thank goodness for fun work trips). I don't drive (in london, are you kidding?) and have an average salary job.

Phew feel a bit better now as mine was about 12k in total.