Help With Student Loans - HERE!

DragonQ

Logged into the Student Finance website recently as I hadn't had any correspondence in a while. Had to change my password as it wouldn't recognise the one I had written down. Anyway, there's a letter of correspondence listed from a few years ago that asks for my employment information, even though I told them after leaving uni that I was doing a PhD (and thus didn't need to start repayments yet). They later sent a letter saying that they had my PAYE information, but at the end of 2012 sent another letter saying they needed to know my employment information.

They all went to my previous address as I hadn't updated it (bit annoyed that they didn't also email me since they have that on file too). Basically my issue is that both letters asking for employment information say that a fine of up to £150 can be issued if I don't respond within 28 days. I should be fine with the most recent letter because I called them yesterday and I was told a note was added to my account to prevent a fine. But what about the first letter from a few years ago? How do I know if they've fined me or not? The person on the phone couldn't tell me.

Lokolo

DragonQ wrote: »

Logged into the Student Finance website recently as I hadn't had any correspondence in a while. Had to change my password as it wouldn't recognise the one I had written down. Anyway, there's a letter of correspondence listed from a few years ago that asks for my employment information, even though I told them after leaving uni that I was doing a PhD (and thus didn't need to start repayments yet). They later sent a letter saying that they had my PAYE information, but at the end of 2012 sent another letter saying they needed to know my employment information.

They all went to my previous address as I hadn't updated it (bit annoyed that they didn't also email me since they have that on file too). Basically my issue is that both letters asking for employment information say that a fine of up to £150 can be issued if I don't respond within 28 days. I should be fine with the most recent letter because I called them yesterday and I was told a note was added to my account to prevent a fine. But what about the first letter from a few years ago? How do I know if they've fined me or not? The person on the phone couldn't tell me.

Look at your student finance statement? You can view them online and they'd show a fine.

DragonQ

Hmm I couldn't see any link for a statement and was told they only get posted yearly. I'll have a look later on.

DragonQ

Yeah, I can't see any link to view my statement. There's these on the studentfinance.direct.gov.uk website:

My Account
View Payments
Update My Profile
Update Security Details
View Correspondence
Update Bank Details

Plus these on studentloanrepayment.co.uk:

My Accounts
Update My Details
Make a Card Payment
View existing Card Payments
Set up new Direct Debit
View existing Direct Debits
Change Repayment Day
View Correspondence

1JRD_

I'm trying to work out whether its better to set up a standing order to start making in roads into my loan, or just save the amount and let it continue to be deducted through PAYE.

Is there a calculator for this somewhere out there?

Lokolo

1JRD_ wrote: »

I'm trying to work out whether its better to set up a standing order to start making in roads into my loan, or just save the amount and let it continue to be deducted through PAYE.

Is there a calculator for this somewhere out there?

You don't need a calculator....

You have £100. Interest rate on student loan is 1.5%. Interest rate on instant access ISA is 2.25%.

You put the £100 in your student loan. You will reduce interest by £15.

You put £100 in ISA. You gain interest of £22.50.

Which do you think is of greater benefit?

Lokolo

DragonQ wrote: »

Yeah, I can't see any link to view my statement. There's these on the studentfinance.direct.gov.uk website:

My Account
View Payments
Update My Profile
Update Security Details
View Correspondence
Update Bank Details

Plus these on studentloanrepayment.co.uk:

My Accounts
Update My Details
Make a Card Payment
View existing Card Payments
Set up new Direct Debit
View existing Direct Debits
Change Repayment Day
View Correspondence

View correspondence has all the letters in it. Should be in there i believe.

bend521

Do student loan repayments come out of gross income? I'm looking to pay off my loan early, but am fortunate enough to be a 40% tax rate payer.

If I was to pay off my loan with cash in the bank, it would effectively cost me 40% more, as it would be repaid from taxed income, than if I just let it run it's course an be repaid from gross income.

Can anyone tell me if the above statement is correct?

Thanks,

Ben

amiehall

Sorry, your student loan repayments are calculated on gross income but paid from net income so you pay tax on the repayments either way I'm afraid. You're not saving any tax by paying them through PAYE.

Lokolo

As above but you can reduce payments if you use salary sacrifice I believe.