Repaying Student Loans 2009/10 guide discussion

rosiereyk

Hi,
I seem to be paying off less a year than the interest I am earning on my loan. I started uni in 2000 and am now earning £19k. Last year I credited the account with £369 (through monthly payments from my salary) but the interest was £455.66 so year on year my debt is increasing. Whilst I'm not in any rush to pay this off, I'm wondering if this is right! Recently I've been paying £20 a month on a £19k salary - does this sound about the right amount of a £12k debt? (You'll not be surprised to hear I didn't do maths - I cant work it all out!)

Can anyone offer any advice?

Lokolo

rosiereyk wrote: »

Hi,
I seem to be paying off less a year than the interest I am earning on my loan. I started uni in 2000 and am now earning £19k. Last year I credited the account with £369 (through monthly payments from my salary) but the interest was £455.66 so year on year my debt is increasing. Whilst I'm not in any rush to pay this off, I'm wondering if this is right! Recently I've been paying £20 a month on a £19k salary - does this sound about the right amount of a £12k debt? (You'll not be surprised to hear I didn't do maths - I cant work it all out!)

Can anyone offer any advice?

You should be paying £30 a month... but its done by PAYE so it should be automatically set.

Also you'll find your debt will not have increased this year as the rate was 0%, so your overall debt will have gone down.

rosiereyk

Thanks - it just seems crazy that its getting bigger, but all i have to do is ignore it!
Crazy system.

Oh well!

Oldernotwiser

rosiereyk wrote: »

Thanks - it just seems crazy that its getting bigger, but all i have to do is ignore it!
Crazy system.

Oh well!

If you think of it as a graduate tax (which could easily have been the case) it will make more sense.

jollyme

Would it be correct to assume that where a completed direct debit mandate has been sent to SLC together with evidence of non uk earnings (living abroad) that slc will use this mandate even though they've written giving details of monthly amount due and made no reference to the dd .

Poolie

jollyme wrote: »

Would it be correct to assume that where a completed direct debit mandate has been sent to SLC together with evidence of non uk earnings (living abroad) that slc will use this mandate even though they've written giving details of monthly amount due and made no reference to the dd .

Since you don't say if pre 1998 or post 1998. I am going to assume post 1998.

SLC will use the mandate to call for the amount due from a UK bank account. Since they have not made reference to the direct debit you should make sure the money is in the bank for the direct debit to be called correctly.

jollyme

Thanks Poolie - wasn't sure if the first months payment should be paid some other way just to be sure the payment wasnt late - but dont want to pay more than is needed

Poolie

Jollyme - When did you graduate as if it was last June/July then your first payment will not be due till April

jazzyjustlaw

On pre 98 loans the threshold is 2254 per month and I recall a few years ago it was 2011 I wonder how they get these figures? Also anyone know what last years wa? I thought 2254 sounded a lot am on 2000 per month so will defer.

Poolie

The figure is prescribed by the Department for Univesities, Innovation and Skills. They are given the figure by the Treasury which is based on the average salary in the UK.