Help With Student Loans - HERE!

EmmaJ_3

Hi

I have quite a hefty student loan as I was at uni for 6 years (01-07), total on my last annual statement is £25652.83 and I've just started making repayments through salary last month.

I've always known that it's best not to pay off any more than you have to for complicated reasons that I never fully understood - I just wanted to make sure that this is still the case? The reason being that my annual statement shows interest being charged monthly at around £100 (varies around that figure each month), wheras I'm only paying back £76 a month from my salary - does this still make it the case that I shouldn't try to pay back any more? Surely it's never going to get any smaller if I'm only paying back less then it's increasing by each month (of course hopefully my salary will increase proportionally over time too I guess).

It doesnt make much difference really as I'm in no real position to pay back any more at the moment, but I'd like to try and understand this.

BruceyBonus

EmmaJ wrote: »

Hi

I have quite a hefty student loan as I was at uni for 6 years (01-07), total on my last annual statement is £25652.83 and I've just started making repayments through salary last month.

I've always known that it's best not to pay off any more than you have to for complicated reasons that I never fully understood - I just wanted to make sure that this is still the case? The reason being that my annual statement shows interest being charged monthly at around £100 (varies around that figure each month), wheras I'm only paying back £76 a month from my salary - does this still make it the case that I shouldn't try to pay back any more? Surely it's never going to get any smaller if I'm only paying back less then it's increasing by each month (of course hopefully my salary will increase proportionally over time too I guess).

It doesnt make much difference really as I'm in no real position to pay back any more at the moment, but I'd like to try and understand this.

The theory is that you are paying 4.8% interest, whereas you could be earning 7% in a savings account. The difference between the two rates is the profit you will make by not paying back the loan early.

roxalana

untune wrote: »

Hi everyone,

I'm hoping someone can help me. I'm trying to get my application done asap but there's one thing that worries me - due to circumstances my parents don't earn a great deal, my mum only works part time etc

When I finished my A levels, from June 2005 to Feb 2006 I claimed job seekers allowance and then upon starting work in March 2006 I've been employed in the same place full time until I leave in July 2008 (in the app I've stated yearly salary as 11500 but this has changed from originally 10500 to 11500 then to 12700 and 13900 in the previous few months).

When I start my course I will be living at home with my parents - the question that worries me is the one that asks if I've been supporting myself financially for 3 or more years which I obviously have answered yes to. When I start uni I won't be working so I can't really see what this has to do with anything but ah well; I'm trying to ensure I get as much as the maintenance grant as possible to ease things in the future.

Am I doing the right thing here? This will classify me as an independent student I suppose and I'm wondering will they just ignore my parents income (which as stated isn't a lot)

I'm really desperate to get this sorted asap so any help would be greatly appreciated

Cheers

I don't think you are going to qualify for 3 years self support because I believe it has to be periods where you were not in full time education - I don't know what A level study you were doing and whether this will exclude your JSA period. If so, this would mean you only have from March 06 so you would not have 36 months of self support.

If the JSA is counted then you might qualify - only the LEA can let you know for sure. I assume you have sent your P60s/wageslips/JSA info to the LEA as evidence - because they need to see this evidence before they can make a decision. If they don't have enough evidence to make a decision they will assess you for non means tested support only in the first instance and reassess you if you provide sufficient info and evidence (this reassessment might not happen straightaway).

If you don't qualify for 3 years self support your parents will need to complete the financial part of the form and provide evidence of income.

roxalana

erb wrote: »

Thanks, but as I said in my post the account is not even open yet so there is no statement from last year.

I find this all a bit amuzing as if I wanted to cheat on the income I simply would not declare any and then there is no evidence to provide. What a trusting world we live in.

I believe they will do a provisional assessment and then write to her to ask for evidence at the end of the academic year - you would then need to provide the bank/dividend statement(s) or a bank letter and then the assessment would be finalised. This would allow her to receive the money from the SLC whilst the LEA await the evidence.

martin84

no_porpoise wrote: »

Hi!

I have had a student loan for a few years but have not made any repayments due to not being over the threshold. However, since Sept 2007 I have been earning over the threshold, but when I examined my P60 today, I realised that my employer has made no student loan deductions (stupid me, I know, not to have noticed this on my payslips!)!
What should I do? Was it my responsibility to inform the SLC that my employer had failed to deduct the repayments, or are my employers responsible? If I inform the SLC now, will they force me to pay the repayments that weren't deducted since Sept, and penalise me horribly? I am particularly worried as I will be leaving this job at the end of August to become self-employed.

call 08702406298 thats the slc ICR number, they will ask you for your payroll and PAYE ref number. its on your Ps60. your deductions would start from june. it wouldnt be backdated

EmmaJ_3

BruceyBonus wrote: »

The theory is that you are paying 4.8% interest, whereas you could be earning 7% in a savings account. The difference between the two rates is the profit you will make by not paying back the loan early.

So is it only 'worth it' if you are saving in a high interest account what you would otherwise be using to pay the loan off???

Or should I still carry just happily look at it as a graduate tax, not even factor it into my 'SOA' and get on worrying about other moneysaving things!!

petereverton

petereverton wrote: »

My wife starts college in september, am working, we get tax credits and help with the rent,
but we were wondering if she is entitled to any student loans?

I tried http://www.direct.gov.uk/en/Diol1/Do...ce/DG_10035908 to find out what we were entitled too, but it just says cant work it out?
any ideas

untune

Hi all, thanks for the contribution roxalana - I did find info stating that JSA DOES count towards self support so I am financially independent according to them.

So I've submitted the app anyways and I've got the list of stuff I need to send off - passport birth certificate etc is all fine, just the financial bit that needs attention.

I need:

* Confirmation from employers of earnings for all/part of cumulative 3 year period

* Original P60 for all/part of cumulative 3 year period

* Original wage slips for all/part of cumulative 3 year period

* Original documentation showing confirmation of benefits received for all/part of cumulative 3 year period

The confirmation of earnings from the employer - will this have to be in some specific format?

The P60 may be a problem as I started in March 06, I dont remember actually getting one for 2005/2006 or 2006/2007, but I did get one for 2007/2008 - I'll check with the HR people at work about this. At the time I didnt even know what a P60 was.

I have all my wage slips since I started

And finally as for the benefits, I found a letter telling me what I was entitled to and when the payments would start but beyond that I don't think I have anything else. I assume if I got into contact with the Job Centre they might be able to help?

Any help on the above would be appreciated

Cheers

untune

Just a quick update to the above - after doing a lot of searching just now (including a flustered hunt for my passport which had gone AWOL) I've managed to track down my P60 for the 2006/2007 tax year and also a P45 from when I stopped claiming jobseekers allowance. Not sure about having a P60 for 2005/2006 as I started work in March 2006? Will check that out tomorrow.

I've also found letters about starting the claim for JSA and also the letter from when it was stopped just before my job started. I'm hoping that all this will meet the criteria they've asked for?

robnye

untune wrote: »

Just a quick update to the above - after doing a lot of searching just now (including a flustered hunt for my passport which had gone AWOL) I've managed to track down my P60 for the 2006/2007 tax year and also a P45 from when I stopped claiming jobseekers allowance. Not sure about having a P60 for 2005/2006 as I started work in March 2006? Will check that out tomorrow.

I've also found letters about starting the claim for JSA and also the letter from when it was stopped just before my job started. I'm hoping that all this will meet the criteria they've asked for?

if they have any doubts they will contact you....... good luck....