Help With Student Loans - HERE!

mangotree_2

hi
I'd really appreciate your advice. I graduated in 2003 with a 13k student loan. I have paid off all but 4k by paying half of my wage every month into it. But here's the thing... all this time I have been earning under the 15k earnings threshold so the payments have been voluntary/ have not come out of my wages. Am I entitled to any tax back on these payments? If I was eaning over 15k I would be getting tax relief - it seems a bit unfair to be penalised for being on a low wage??
I have tried asking SLC and Inland Revenue but they both tell me to talk to the other!!! Any one any idea about this.
Mangotree.
PS: Be proud people,it'll soon be paid off and a distant memory!!!!

AddieH

carmen6grace wrote:

hi i am a first year student at university in scotland and didnt apply for the student loan. currently i dont need the extra money but i am thinking of taking out the loan and investing it for the future. im not sure if the interest i make from my bank account will be greater than the amount of interest i have to eventually pay off. im not very good with numbers or general financial stuff actually. just cant get my head round it. what do you advise? is it worth it? thanks for any help

Are you a student from England, if so the current loan interest rate is 2.4% (http://www.slc.co.uk/noframe/news/interest.html) which is linked to inflation. So in terms of what your money will buy you on a day to day basis the value of the outstanding loan does not increase. Most savings accounts are in excess of 2.4%, for example I could pay off my outstanding loan now, but I keep the money in a savings account which pays around 5.8%.

AddieH

cutesee wrote:

Is there an age or an amount of time that would cancel the student loan? I was once told that if you get to 50 and have paid none of it back, you are exempt. Also heard that if you hadnt been able to pay up to 5 years after you graduate you are then exempt. Cheers for any info.

Again, are you an English student, if so if you began your course before 2006/07 provided your income is above £15,000 at present you will be expected to continue to make payments on the loan until you either reach the age of 65 or die.

If you are under the arrangements that began in 2006/07 the loan balance will be written off after 25 years.

AddieH

gravity wrote:

I have been carefully tracking the amount I had to pay off on my student loan (it has been many years paying it all off). I worked out that my last payment should have been January and would be approximately £50. To my suprise the full amount was deducted in January.

I spoke to my hr departement and the student loans company. Apparently the slc don't know when a loan is paid until they receive the end of year figures from the inland revenue in april. They said they would issue a stop notice to the inland revenue but this could take upto 40 days to take effect. Once the slc have the figures from the inland revenue they will then reimburse any overpayments.

This seems a quite ridiculous situation and I know find I will be overpaying nearly £500 and I don't yet know how quickly I can get this money back. I feel sorry for anyone that say made their last payment in may as unless they kept accurate track of the loan they could end up paying a large number of months over their loan.

Is there anything I can do about this? Can i try to claim extra money back for interest lost / inconvenience caused?

SLC have correctly advised you of the course of action and will refund you the amount you have overpaid and, as I understand, should refund lost interest (I don't know at what rate).

AddieH

tessathailand wrote:

Hello

I am 26 years old and studying part time with Open University. I work full time, am married and have a young son. I have just bought my first house and am looking for a loan so that I can furnish it etc. Would I be eligible for a student loan? I am not eligible for any grants etc but I thought a loan might be different as I pay this one back!

Thank you

No, as a part-time student you will not be eligible for a student loan, If you are studying for your first undergraduate degree you may be eligible for a grant for your fees (or part payment) and a course grant of up to £250 for books or other course expenses.

More info here: http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/FinanceForNewStudents/DG_10034863

AddieH

mangotree wrote:

hi
I'd really appreciate your advice. I graduated in 2003 with a 13k student loan. I have paid off all but 4k by paying half of my wage every month into it. But here's the thing... all this time I have been earning under the 15k earnings threshold so the payments have been voluntary/ have not come out of my wages. Am I entitled to any tax back on these payments? If I was eaning over 15k I would be getting tax relief - it seems a bit unfair to be penalised for being on a low wage??
I have tried asking SLC and Inland Revenue but they both tell me to talk to the other!!! Any one any idea about this.
Mangotree.
PS: Be proud people,it'll soon be paid off and a distant memory!!!!

I'm a bit puzzled by this one, the point of the £15k threshold is so that repayments are only asked of those that can afford to repay. I'm not really sure why you've made those repayments when you didn't have to?

emma_marie

When I applied for my student loan I was planning on moving into student halls, working part time and also would have received support from my dad.
I am now, only a year later, living in my own house with a mortgage, OH works full time but I am currently not working because I was made redundant (I am looking for part time work) and I am receiving no financial support from my dad yet his earnings are still being taken into account when allocating my loan.

Does anybody know where I stand on this...?

emaw

slcworker wrote: »

Hey, i have alot of Knowledge of how the student loans procedure works. If anyone needs any help, i can advise as much general info.
Obviously i cant divulge into specifics due to Data Protection and the fact that i'd get fired, but anything i can help with, just let me know.

Can anyone please help me;

I was at uni from 2000 and graduated in 2004 and took out a student loan for all of those years.

I now owe circa 10k and have no intention of making any extra repayments above the mandatory 9% above the current 15k threshold.

I've read conflicting info regarding the time period before the debt is written off. Is it a maximum of 25 years after I graduated (or is this just people who took out loans from 2004 on?) or am I in a seriously short changed catergory of people who took out loans between 1998-2004 who have to wait until they're 65 before it's written off and therefore are potentially paying it back over about 43 years?!!

Thanks in advance!

HappyFeet_2

emma_marie wrote: »

When I applied for my student loan I was planning on moving into student halls, working part time and also would have received support from my dad.
I am now, only a year later, living in my own house with a mortgage, OH works full time but I am currently not working because I was made redundant (I am looking for part time work) and I am receiving no financial support from my dad yet his earnings are still being taken into account when allocating my loan.

Does anybody know where I stand on this...?

Unless you're married or can prove you've been living independantly for 3 years the parents income who you were living with previously will be taken into account.

HappyFeet_2

emaw wrote: »

Can anyone please help me;

I was at uni from 2000 and graduated in 2004 and took out a student loan for all of those years.

I now owe circa 10k and have no intention of making any extra repayments above the mandatory 9% above the current 15k threshold.

I've read conflicting info regarding the time period before the debt is written off. Is it a maximum of 25 years after I graduated (or is this just people who took out loans from 2004 on?) or am I in a seriously short changed catergory of people who took out loans between 1998-2004 who have to wait until they're 65 before it's written off and therefore are potentially paying it back over about 43 years?!!

Thanks in advance!

As far as i know you're exactly right in your thinking, that you're under the old system so your loan wont be written off after 25 years.