Student loan cleared

ericthekidstoner

RE: deferring... if you're getting a mortgage then imho it is worth deferring yr student loan bc: a) monthly afforability b) mortgage amount - student loan doesn't count as "debt" which decreases the max a bank may lend you c) it's a lot cheaper!

checkout MSN's Student Loan Repayment Estimator

http://money.uk.msn.com/student/bankingandfunding/loan_repayment_estimator.aspx

David_Brent

ringo_24601 wrote:

David, my loan didn't start getting repayed until April (i started work in january). Your student loan will come directly out of your pay each month. Your employeer deducts it and passes it to the inland revinue. the IR then pass it to the student loans company once a year.

If you don't have it deducted in your first month, don't worry. If you want, put 50 pounds away and save it. In your 2nd month, if you're still not paying your student loan, contact your accounts department. It is their role to tell the inland revinue about your employment, not you. Sometimes they need a push. Failing that, as your human resource department to contact them. Put that 50 pounds in the bank again.

Eventually you'll start paying your loan back. At your salary it'll be at around 55 pounds a month. You can see what your take home pay would be here:
http://www.i-resign.com/uk/financialcentre/tax_calculator.asp

You can contact the SLC company and send them that money you saved away in your first few months. They've got more info on how to contact them on their website.

Thanks for your response that link is very helpfull!! - Didn't realise how much the tax man takes out of your salary !!!!

surfsister

HGLTsuperstar wrote:

If they do owe you. push them for interest on it as they'll take their time to pay up, in fact will probably hang out until end of tax year, so nearly a full 12 months. Go for 5% gross minimum!

Hi there just about to go along the student route!

Can you tell me if I start to pay interest as soon as I apply for/get the loan and any idea how much the interest rate is.

Also do i get the loan or does it go to the college?

thanks

[Deleted User]

The interest is calculated daily from the start of you receiving your loan at (currently) 3.2% APR. It is added to your loan each month.

The loan will go straight into your bank account

Here's where that info is from http://www.slc.co.uk/noframe/faqs/msrepay.html and their phone number (for students) is 0870 240 629

surfcat

fran_from_willesden wrote:

I think mine is in the region of £14k. Hopefully like jitsuguy I'll be too old to pay it off in 40 years!

I don't understand these sentiments, from you and also a lot of others on this board and in wider life. Surely by hoping you will never paying it off you are saying that "I hope I spend my entire working life on a low salary".

Personally "I hope my loan gets paid off quickly" aka "I aim to be earning lots of money, moving up the career ladder etc.."

[Deleted User]

Well, just got a letter from the SLC telling me that they've informed the inland revinue to stop collecting loan money. This message then has to go through to my employeers. I'm hoping that i don't have my 85 quid deducted this month as our accounts department are usually quite good. Yay, it'll be like a 1.5K payrise when i stop paying.

I seriously doubt i'll see any of the over-paid cash until next april. Not very fair when i'm wanting to buy a house and i'll need every penny i can muster.

I'll also agree with surfcat - wasn't the point of uni to get yourself into a better position for your career? If your career doesn't get your salary above 15K a year eventually then you probably should have not bothered with uni.

Sillychuckie

Goldilox wrote:

You will only get it paid off if you never earn over £15,000 before retirement age or if you become severely disabled.

or... if you work abroad for more than (i think its) 7 years.
Loan is written off or something.
I don't know the details, look them up on SLC, but there is definitely a write off if you leave UK. 2 of my friends have taken advantage of that offer after doign 2 degrees and raking up closer to 30k loan debts.

EDIT:
But now I see this statement:

The SLC will send you annual statements detailing repayments, interest and outstanding balances. These and your pay slips (or own records for the self-employed or those living abroad) should ensure that you can keep track of what you owe.

... so I'm not so certain.
It is definitely something I 'heard', so worth finding out. May not be the case any more.

[Deleted User]

ah, the old 'leave the country, wipe out my debt' lark. I bet it doesn't work, there's no benefit to them in wiping out your debt and you're only doing yourself out of national insurance contributions. You might want them when you come to retire.

As far as i know, there a 3 circumstances in which your debts are erased:
i) you die
ii) You become perminantly disabled and cannot work
iii) You reach retirement age

This page is the FAQ on paying it back:
http://www.slc.co.uk/noframe/lr/sss/repayov.html

[Deleted User]

Good news - I got my payslip yesterday and where the space for student loan payment is it says 0.00!! I was quite surprised, I guess the accounts department at work aren't as useless as I thought they were.

Still, the useless !!!!!!s owe me £1,400 in expense payments

melancholly

ringo_24601 wrote:

Good news - I got my payslip yesterday and where the space for student loan payment is it says 0.00!! I was quite surprised, I guess the accounts department at work aren't as useless as I thought they were.

Still, the useless !!!!!!s owe me £1,400 in expense payments

an efficient accounts department?!?! at taking your money maybe... never at giving it back to you!!!

anyway - well done on paying it all off!!