Repaying Student Loans 2009/10 guide discussion

Jane_Davies

Well I am hoping that common sense will prevail and they will be specific about what 'evidence' they want and at least then I will know. I am hoping that you are wrong when you 'warn' that I will get the form back saying they want 'information'/'evidence' without any indication of what they actually want, as that in my view would be ridiculous and completely inefficient.

As to what information they can legally request, I will find out the answer from someone who knows.

Poolie

Why are you questioning what information they legally require from somebody else when I have told you exactly what is required.

A letter from your partner stating that he is supporting you while your unemployed. He doesn't need to prove his income or any other information.

If you start working in the future your change in circumstances should be automatically detected by the tax office as they regularly scan the system looking for people to try and get as many as possible repaying.

Oldernotwiser

Jane_Davies wrote: »

Annoy the staff? Surely if they want something specific they should ask for something specific. Doesnt seem too much to expect to me. If they are 'annoyed' I'm not telepathic then thats entirely up to them.

But they have been specific about some of the information they want and you don't want to give it to them! I don't think that you can have it both ways.

Tangoqueen_2

My daughter graduated summer 2009 and went to work in Orlando on a 12 month contract. She did not think about advising SLC, however they have written to her at home address to request further information. She has advised that she is working abroad and is forwarding them the requested payslips. I know that working in USA she can earn equiv. to £12,000 before repayments commence. The bit that I would like some further info is ......... repayments do not commence on your loan until the start of the next financial tax year after graduating (which of course will be April 2010). So, dos this mean that repayments will only actually be made on weekly income received after beginning of April 2010 or am I missing something? Are the payslips they have requested for the past 3 months only to prove she is working or will they want her to pay repayments from April but backdated throughout 2009.

My daughter would ask them direct but of course phoning from USA will cost a fortune so it's been left to me to find out what I can.

Her basic income isn't huge but she is now a waitress and tips can make paycheck much larger, but as tips are not guaranteed pay does go up as well as down so would at times take her over the £12,000 pa weekly proportion.

Thanks for any advice you are able to offer. :rolleyes:

Oldernotwiser

lindalea wrote: »

My daughter graduated summer 2009 and went to work in Orlando on a 12 month contract. She did not think about advising SLC, however they have written to her at home address to request further information. She has advised that she is working abroad and is forwarding them the requested payslips. I know that working in USA she can earn equiv. to £12,000 before repayments commence. The bit that I would like some further info is ......... repayments do not commence on your loan until the start of the next financial tax year after graduating (which of course will be April 2010). So, dos this mean that repayments will only actually be made on weekly income received after beginning of April 2010 or am I missing something? Are the payslips they have requested for the past 3 months only to prove she is working or will they want her to pay repayments from April but backdated throughout 2009.

My daughter would ask them direct but of course phoning from USA will cost a fortune so it's been left to me to find out what I can.

Her basic income isn't huge but she is now a waitress and tips can make paycheck much larger, but as tips are not guaranteed pay does go up as well as down so would at times take her over the £12,000 pa weekly proportion.

Thanks for any advice you are able to offer. :rolleyes:

As you will see if you look at my link above, you only need to notify the SLC (by completing the form) from April of the year following graduation.

"Please note: This form should only be completed and returned to the Student Loans Company once your account enters repayment. Repayments start of the April following your graduation date or the date you leave your Course."

If you live in the UK, repayments will be due for any week in which income goes over the weekly equivalent of £15,000 pa. but I'm not sure of that is the case when she's abroad, as it would seem very difficult to administer.

Poolie

Since your daughter is overseas and you have previously mentioned the threshold for USA is £12k.

The form has to be completed and returned in time for the repayment cycle to start in April 2010.

She will need to provide 3 months worth of payslips as SLC will take the average of these payslips and use this to calculate if she is due to make repayment.

Any repayments will have to be made by cheque in advance from a UK bank or by Direct Debit from a UK Bank on a monthly basis.

Also, you will not be able to complete the form on your daughters behalf unless she has given you the written authority to do this. Best for her to write a letter, which can be sent back with the form, clearly stating that she is giving you access to her account and how long this access is to be granted for.

bosherboru

Hello. My son left uni after half the first term , but the loan has continued to be paid into his bank account . What is his legal standing about paying back ? Can he keep it and pay it back as if under normal circumstances , or will he be required to return the money as soon as they eventually realise what has happened?

Poolie

Has he told student loans? Did he tell his university. If he has withdrawn then the loan should become payable in April 2010 since he has left.

His loan will be reassessed and if he has been overpaid then they will demand repayment for the amount. The rest would be payable once it enters repayment through his salary once earning over £15k gross.

libbyc3

Hi and thanks in advance for any advice!
I am currently in 1st year of degree but have 2 years student finance outstanding pre 1998 - approx £5200. I am worried when I start work that I will be significantly worse off if I am paying 2 lots of loans so would like to pay the pre 1998 loans while still at uni. My question is - I seem to remember reading somewhere that thses loans are actually shrinking due to inflation so should I wait before paying them. I have enough saved to pay one - currently £2600 and aim to pay the other off in the next 2 and half years but shall I wait before making a lump sum payment of the first one?
thanks

Poolie

The interest rate on Pre 1998 loans is currently -0.4% till 1st September 2010. So the loan is reducing the balance very slowly.

You have remember that your Pre 1998 loans do not become payable till you earn over £27,050. Your post 1998 will be come payable once you earn over £15,000 you will pay only 9% above the threshold.

If you want to reduce the balance of your Pre 1998, you are best waiting till mid to late August to make sure you get the most out of the negative interest and then pay off as much as you can afford. This depends on what the interest rate will be post 1st September.

If still negative your best to hang fire for another year to get the benefit of the second year of negative interest and save it in a savings account till you have the full amount or the negative interest stops.