Help With Student Loans - HERE!

[Deleted User]

angei010 said:

Hi
i am on plan 1 student loans and it should stop when I am 65 which is 2 weeks into November this year.

when do my payroll stop taking money from my pay and are they advised to do so the month before please.

@An@angei010

Your loan repayments will continue to be taken up to the point where you qualify for loan cancellation.

SLC now receive weekly files via HMRC of your repayments, and have for some time now.

As @Savvy_Sue rightly says, an employer gets no advance notification because that isn't how the system works. It is reactive, not pre-emptive.

To help ensure that repayments stop when they're due, I would very much recommend you take a moment out of your celebrations on the day, and give them a quick call to have them issue a stop notification to your employer via HMRC.

Then, the only concern you'll have is whether your employer processes the notification promptly or not.

[Deleted User]

paulsvan said:

Hi,
I have a historic Student Loan, taken out in 1993. I only completed one year of study at Coventry University due to a family members terminal illness and until recently assumed the loan had been paid off through my earnings.

I found out 2 years ago I still had a (small) outstanding balance so when I changed job I asked the payroll department to attempt to catch up on these payment with The Student Loans Company, unaware that my debt was now owned by Erudio.

Since that day I have been paying HMRC via my employer but am struggling to find out where my money has gone and how to a) stop the payments (my employer says by law they cannot), b) claim the money back and c) pay Erudio and clear the debt.
*I am also aware that debts may be written off but unsure if mine is eligible.

Can anyone advise?

Hi

If I'm honest your query is a bit all over the place, so I'm not really clear on how you can possibly be repaying via your salary if you don't have an Income Contingent Repayment loan (loans taken after 1997). Your employer would most certainly not deduct repayments (or in fact stop deducting repayments) on your say so.

It is correct that they are legally obliged to act on formal notifications from HMRC, but they would only receive one of those if you specifically had a loan post '97 - not just any old student loan.

Do you, or did you perhaps have a loan that you took after '97 too?

If you do/did, then those repayments from your salary were intended ONLY for that loan, and you were/are still obliged to either repay or defer repayment of your older pre '97 loan(s) which Erudio now own.

If you didn't take another loan post '97, then I'd encourage you to review your payslips and/or P60s to confirm whether repayments were in fact taken.

If they were SLC will never see that money and you should contact HMRC to establish whether or not your employer sent those records to them. If they did, you'll get a refund directly from HMRC.

If it's still happening now, you may also get a refund from your employer for anything they've taken since April last year.

Although you don't have a later loan, you will need to get some info together, contact SLC and ask them to send a notification to your employer, via HMRC, to stop taking deductions.

You'll need your:

Name
DoB
National Insurance Number
Employer's Name
Payroll ID
PAYE (Tax Office Reference)

You'll find the contact details for SLC on the Gov website.

That all being said, back now to your '93 loan, it sounds like you've fallen behind on the maintenance of your Erudio account so the balance is likely in arrears and won't be written off. You'll need to clear any arrears owed and if there is a balance that remains afterwards, you'll need to either defer repayments (if you're eligible), repay it or ask about loan cancellation if you meet the criteria.

[Deleted User]

cobson said:

Am I right in thinking that when applying for student finance and giving details of parents income, the 25% tax free lump sum from a pension doesn't need to be declared ?

@cobson

The form  on which a parent supplies their income information literally says (twice) on it 'if you receive a lump sum pension, only declare the amount you received that you paid tax on'. In other words, any portion of the lump sum you received that is not eligible to be taxed, you don't declare.

throwa001

Hi, my husband has an undergrad degree and a Masters (relating to his degree), he completed the Masters in 2002.  He now would like a career change, but needs a very specific Masters degree to get an entry level position in this new career (Planning).  He did not take out a Post Grad Student Loan for the first Masters course.  Is he entitled to any funding to support this second Masters, specifically around tuition fees?  Living costs won't be an issue, and the overall household income is too high for any sort of grant etc.  Many thanks.

Savvy_Sue

throwa001 said:

Hi, my husband has an undergrad degree and a Masters (relating to his degree), he completed the Masters in 2002.  He now would like a career change, but needs a very specific Masters degree to get an entry level position in this new career (Planning).  He did not take out a Post Grad Student Loan for the first Masters course.  Is he entitled to any funding to support this second Masters, specifically around tuition fees?  Living costs won't be an issue, and the overall household income is too high for any sort of grant etc.  Many thanks.

Not from the 'normal' postgrad student finance pathway, which a 30 second google would confirm: https://www.gov.uk/masters-loan/eligibility

He can ask the course tutors if they know of anything, but if there is, it's likely to be hugely competitive. 

Does he have a job to go to in this new career, and if so would the employer support his study? 

suzieb123_2

Hi 
I have the opportunity to take out a lump sum from my pension pot. 25% will be tax free. I understand that a pension lump sum is classed as an income and would be added to my income and therefore if I don’t want to pay any loan back this year, I need to keep it under £26575 total. Will the 25% tax be included with in the £26575? 

I also noted that I don’t have to start payback til the April after I finished my degree,ie 2021. If that is so, can I take a larger amount that would take me over the threshold this year without incurring payments? 

Many thanks

paulsvan

[Deleted User] said:

paulsvan said:

Hi,
I have a historic Student Loan, taken out in 1993. I only completed one year of study at Coventry University due to a family members terminal illness and until recently assumed the loan had been paid off through my earnings.

I found out 2 years ago I still had a (small) outstanding balance so when I changed job I asked the payroll department to attempt to catch up on these payment with The Student Loans Company, unaware that my debt was now owned by Erudio.

Since that day I have been paying HMRC via my employer but am struggling to find out where my money has gone and how to a) stop the payments (my employer says by law they cannot), b) claim the money back and c) pay Erudio and clear the debt.
*I am also aware that debts may be written off but unsure if mine is eligible.

Can anyone advise?

Hi
If I'm honest your query is a bit all over the place, so I'm not really clear on how you can possibly be repaying via your salary if you don't have an Income Contingent Repayment loan (loans taken after 1997). Your employer would most certainly not deduct repayments (or in fact stop deducting repayments) on your say so.
I asked them to repay the outstanding amount when the option came up in my salary agreement. I assumed (stupidly) that it was just a tickbox exercise.

It is correct that they are legally obliged to act on formal notifications from HMRC, but they would only receive one of those if you specifically had a loan post '97 - not just any old student loan.
Do you, or did you perhaps have a loan that you took after '97 too? No, just this one.

If you do/did, then those repayments from your salary were intended ONLY for that loan, and you were/are still obliged to either repay or defer repayment of your older pre '97 loan(s) which Erudio now own.
If you didn't take another loan post '97, then I'd encourage you to review your payslips and/or P60s to confirm whether repayments were in fact taken. Yes, have done so and doing some basic maths I can confirm over £2500 has been taken to cover a £500 debt.

If they were SLC will never see that money and you should contact HMRC to establish whether or not your employer sent those records to them. If they did, you'll get a refund directly from HMRC. I did request this from HMRC in March but to date there has been no cancellation or refund made. I can only put this down to a Covid oversight.

If it's still happening now, you may also get a refund from your employer for anything they've taken since April last year. They tell me they can't stop the payments by law and HMRC have to cancel at their end. I don't know who to contact at HMRC - took me hours of being passed around last time.

Please see responses above inline.

jubilee12

Hi, at the grand age of 50, I want to retrain in NHS. Have a BA, MA. No student loads. Can I get student loans to cover tuition fees? It will be either Occupational Therapy or Dietetics. & I understand I will have to keep paying loans back after I retire - would this be only over the 26,000 p.a. income threshold? thanks

Zolablue

My daughter is looking to go to University in September so we had a look at the student finance application last night and quickly gave up! I've been trying to find more information about it and have only confused myself more.
From what I can understand, we need to include all earnings from my wife and I and all other income from bank interest/pensions etc. I read that if you paid in to a personal pension (as my wife does) that you could get credit for that but it said that we needed to send the P60 as evidence - it doesn't appear on her P60. Is that normal and how would I go about providing the required evidence?
Thing is, in 2019/20, (the year that is assessed for this year's application) my wife did 3 months temping work so our income was boosted that year but in 20/21, due to Covid and shielding, she has been unable to work. I have also had some furlough. The website says that if your income falls by at least 15% then you can ask to be assessed on this year's income. Ours is coming in at 14%. Is the 15% reduction on total income or total income minus allowable expenses (private pension)? We still pay the maximum allowable in to my wife's private pension (£2880) each year even though she hasn't been working.
I really didn't think that the application process would be so confusing - lesson learned!

Sorry if this is a bit of a ramble but I am quite confused and I'm not even sure that I can communicate my questions properly!

sheramber

Hi
If I'm honest your query is a bit all over the place, so I'm not really clear on how you can possibly be repaying via your salary if you don't have an Income Contingent Repayment loan (loans taken after 1997). Your employer would most certainly not deduct repayments (or in fact stop deducting repayments) on your say so.
I asked them to repay the outstanding amount when the option came up in my salary agreement. I assumed (stupidly) that it was just a tickbox exercise.

It is correct that they are legally obliged to act on formal notifications from HMRC, but they would only receive one of those if you specifically had a loan post '97 - not just any old student loan.
Do you, or did you perhaps have a loan that you took after '97 too? No, just this one.

If you do/did, then those repayments from your salary were intended ONLY for that loan, and you were/are still obliged to either repay or defer repayment of your older pre '97 loan(s) which Erudio now own.
If you didn't take another loan post '97, then I'd encourage you to review your payslips and/or P60s to confirm whether repayments were in fact taken. Yes, have done so and doing some basic maths I can confirm over £2500 has been taken to cover a £500 debt.

If they were SLC will never see that money and you should contact HMRC to establish whether or not your employer sent those records to them. If they did, you'll get a refund directly from HMRC. I did request this from HMRC in March but to date there has been no cancellation or refund made. I can only put this down to a Covid oversight.

If it's still happening now, you may also get a refund from your employer for anything they've taken since April last year. They tell me they can't stop the payments by law and HMRC have to cancel at their end. I don't know who to contact at HMRC - took me hours of being passed around last time.

Please see responses above inline.

Your employer would need a notice from HMRC to start collecting student loan repayment. He should not start collecting payments because you ask hime.
A 1993 loan would not be paid back through wages, It would be paid direct, usually by direct debit. HMRC would not be involved.
 Payments submitted to HMRC would be sent to the Student Loan Company so
1) you need to contact them as advised  and explain that your employer is deducting student Loan repayments but you have a 1993 loan and he should not be deducting payments,
 a) Ask them to issue a stop notice to him to stop the deductions.
b) Ask them where these payments will be held and how do you get them back.. 
Although you don't have a later loan, you will need to get some info together, contact SLC and ask them to send a notification to your employer, via HMRC, to stop taking deductions.

You'll need your:

Name
DoB
National Insurance Number
Employer's Name
Payroll ID
PAYE (Tax Office Reference)

You'll find the contact details for SLC on the Gov website.
.............................

 2) You need to contact Erudio  and find out  what the current position is with your 1993 loan,
https://www.erudiostudentloans.co.uk/en/contact-us.html