Help With Student Loans - HERE!

ThatGuy11200

SFSLExpert said:

ThatGuy11200 said:

I recently finished paying off my postgraduate loan and I've now realised my current employer, where I started work in August last year, has also been deducting student loan repayments for an undergraduate loan that I never had.  Would the procedure for reclaiming this money be the same as for overpayments?

@ThatGuy11200

Have your PAYE details to hand, contact them and ask them to ensure a 'stop notification' (SL2) is sent to your current employer.
If the deductions were taken last Tax Year, 2019/20, you'll likely receive a rebate cheque from HMRC directly if they shouldn't have been taken at all, but SLC may just refund you themselves.

Anything taken after 6 April 2020 will usually be refunded direct at source (your wage), but HMRC might well do this too since they're receivong updates far more frequently than the annual updates they used to get.

Disclaimer: not an expert

Thanks.  I called SLC, who only had a record of the postgraduate payments.  I assume that's because it goes through HMRC, so HMRC only inform them of the payments that are actually going towards an actual loan (if that's the case it kind of disturbs me that HMRC would just take money when they don't know what it's for without querying it).

The guy on the phone had to fill in a form to send to HMRC.  He said HMRC would be the ones to issue the stop notice.

[Deleted User]

ThatGuy11200 said:

SFSLExpert said:

ThatGuy11200 said:

I recently finished paying off my postgraduate loan and I've now realised my current employer, where I started work in August last year, has also been deducting student loan repayments for an undergraduate loan that I never had.  Would the procedure for reclaiming this money be the same as for overpayments?

@ThatGuy11200

Have your PAYE details to hand, contact them and ask them to ensure a 'stop notification' (SL2) is sent to your current employer.
If the deductions were taken last Tax Year, 2019/20, you'll likely receive a rebate cheque from HMRC directly if they shouldn't have been taken at all, but SLC may just refund you themselves.

Anything taken after 6 April 2020 will usually be refunded direct at source (your wage), but HMRC might well do this too since they're receivong updates far more frequently than the annual updates they used to get.

Disclaimer: not an expert

Thanks.  I called SLC, who only had a record of the postgraduate payments.  I assume that's because it goes through HMRC, so HMRC only inform them of the payments that are actually going towards an actual loan (if that's the case it kind of disturbs me that HMRC would just take money when they don't know what it's for without querying it).

The guy on the phone had to fill in a form to send to HMRC.  He said HMRC would be the ones to issue the stop notice.

Glad they're sorting it.
Yeah, SLC would only have data on the loans and repayments you actually have with them.

Of course if you don't have an U/G loan with them it's extremely unlikely that they've been the instigator in this. They can/will only issue notifications with the data they hold and each type of loan has a unique notifier from HMRC to your Employer.

It's nothing to be too concerned about though,  all the processes are automated to a point, but there can be simple things like miskeying a National Insurance Number at their end, or even an honest payroll error where your employer might have got you mixed up with another employee.

It's good that you noticed them being taken, and you've got them stopped. The main thing, of course is that you'll get every penny back that has been taken.

You'll likely see any repayments being refunded from this year in your next payroll run if you're paid monthly. If you're paid more frequently I'd err on the side of caution, and expect a max of 4 weeks to process.

Any repayments refunded from HMRC direct to you should be around the same timescale, but as I say those will likely be by cheaue.

Disclaimer: not an expert

strawb_shortcake

My Husband is starting uni next month, it's a 4 year course and he will be taking the fees and maintenance loan though perhaps not every year. 
He will be nearing 47 by the time he finishes the course, assuming he does 20 years of work before retiring, under current rules he'd still have 10 years left before the the loan can be written off.
If his pension was to be high enough would student loan repayments be taken from his pension? 
He has talked about overpaying the loan once he's working but he's also got some expensive hobbies he'd like to do when back earning so not sure which will take precedence...

Thank you

[Deleted User]

Hi

47 isn't old, he's well within his ablement to repay more. There isn't much that I agree with Martin Lewis on, but this is one of the things I do.

Assuming you're in England, he'll be completing his studies with anywhere upto £73k worth of debt which would be an additional outgoing of £435 to clear by retirement age.

Only repay what you need to but if you must repay more, only repay what is comfortable to you.

Disclaimer: not an expert

johnd73

Looking for some help with student loans taken out in 1995. Both myself and my partner have messed up and were in arrears with our loan account when we passed the thirty years/turned 50.
As a result the loans have not been written off. Anything we can do? Neither of us earn over the threshold to have been repaying the loans. Do we now have to pay the loans off?
Any advice would be appreciated 
Regards
John

[Deleted User]

johnd73 said:

Looking for some help with student loans taken out in 1995. Both myself and my partner have messed up and were in arrears with our loan account when we passed the thirty years/turned 50.
As a result the loans have not been written off. Anything we can do? Neither of us earn over the threshold to have been repaying the loans. Do we now have to pay the loans off?
Any advice would be appreciated 
Regards
John

Hi John

If you breach the terms of contract, the lender has no obligation to fulfil the cancellation policy until the account is brought up to date.

You can throw yourselves on the mercy of the lender and ask if they will consider allowing you to apply for repayment deferment retroactively, but you will need to supply whole year earnings from ALL sources for the years that you failed to defer in the past. Of course, if your income exceeded the relevant thresholds, you will need to repay anyway.

That said, you have breached the contract, whether your intent or not, be prepared for the lender to exercise their right to say no, and demand repayment.

If so, you need only repay the arrears balance. If any outstanding balance remains thereafter, you can apply to defer repayment for that portion and/or request cancellation of your loan once the account is brought back up to date.

Also, it is worth noting that, for clarity, if your cancellation date was April 2019 (example) and you have arrears beyond this point, this too must be repaid as it is repayment that fell due as a result of the breach of contract.

ONLY a non-arrears balance is considered for cancellation, and ONLY once arrears have been repaid/brought up to date.

Disclaimer: not an expert

Jitter

Good evening,
My daughter has come me for some financial advice and I'm not sure so hoping someone can give me some!
She graduated as a physiotherapist last year, NHS salary £24,900 but for example the highest paid month during the height of C19 equated to £30,000 per year due to shift/bank holiday allowances.
Student loan on graduating £7392 (low due to NHS bursary), plan 2.
She has savings and after saving £4k a year a year into a LISA she can still pay off the student loan - I think this looks a better option than keeping the money in a building savings account given the relative interest rates , if anyone could confirm or offer advice to the contrary I would be very grateful.
Thanks
Simon

Savvy_Sue

Jitter said:

Good evening,
My daughter has come me for some financial advice and I'm not sure so hoping someone can give me some!
She graduated as a physiotherapist last year, NHS salary £24,900 but for example the highest paid month during the height of C19 equated to £30,000 per year due to shift/bank holiday allowances.
Student loan on graduating £7392 (low due to NHS bursary), plan 2.
She has savings and after saving £4k a year a year into a LISA she can still pay off the student loan - I think this looks a better option than keeping the money in a building savings account given the relative interest rates , if anyone could confirm or offer advice to the contrary I would be very grateful.
Thanks
Simon

There's a couple of articles on this page https://www.moneysavingexpert.com/students/a-z/ which your DD should look at. It's true that savings rates are low, but bear in mind that if her income drops below repayment levels, and she's still got the savings, then she can use them, BUT if she's used them to pay off the loan and income plummets, she can't. 

Jitter

Savvy_Sue said:

Jitter said:

Good evening,
My daughter has come me for some financial advice and I'm not sure so hoping someone can give me some!
She graduated as a physiotherapist last year, NHS salary £24,900 but for example the highest paid month during the height of C19 equated to £30,000 per year due to shift/bank holiday allowances.
Student loan on graduating £7392 (low due to NHS bursary), plan 2.
She has savings and after saving £4k a year a year into a LISA she can still pay off the student loan - I think this looks a better option than keeping the money in a building savings account given the relative interest rates , if anyone could confirm or offer advice to the contrary I would be very grateful.
Thanks
Simon

There's a couple of articles on this page https://www.moneysavingexpert.com/students/a-z/ which your DD should look at. It's true that savings rates are low, but bear in mind that if her income drops below repayment levels, and she's still got the savings, then she can use them, BUT if she's used them to pay off the loan and income plummets, she can't. 

Thank you very much, having read those articles I am much clearer about the situation. I had thought the interest rate was higher but my daughter had given the the year to date amount of interest paid!
Given your comments above, and the fact that her Marcus account is paying 1.05% there would only be a saving in interest of £100/year, a price worth paying for keeping the flexibility that having the savings available gives.

Babitty

Hello Everyone

Looking for some advice with regards funding and Student Loans for Uni in Scotland.

I am 59 and looking to start Uni next month, in year two of a 4 year degree course. I have never attended Uni before.

I was under the impression from the SAAS website and other sites, that as long as I am under 60 on the first day of my first academic year, I would receive Funding and student loans for all three years? SAAS have now told me thats not the case and once I turn 60 I will not receive anything for the remaining two years of my course.

SAAS website reads.

(You must also be under 60 on the first day of the first academic year of your course of education (the relevant date)  

If you change course and are aged 60 or over on the relevant date of your new course, regardless of which year you enter your new course, you will not be entitled to a student loan for your new course.)

If what I have been told today from SAAS is true, then the above is very badly worded and very misleading indeed? Or maybe its just me?

If I indeed receive no funding after 60, then why is it just not worded, that you will not receive any funding if you are over 60, no matter what year you are in? Also why state first academic year? Should it not read any Academic year?

Also if I start in year two at 59, does this mean I receive no funding at all, as its not the first academic of my course? Or if that’s not the case again why state first academic year and not just any academic year.

Plus, why does it state that changing courses at over 60,  regardless of the year you enter your course, you will receive no funding? Why would the year of the course be relevant, If you receive no funding at over 60 even if you don't change courses?

If it had just stated that there is no funding for anyone over 60 no matter what year or anything, then I would have known where i stood from the get go.

I am sorry for my rant here, but I am shocked and now just dont know what to do regards my course.

Any help and advice would be greatly appreciated.