Repaying Student Loans 2009/10 guide discussion

Poolie

Since you dropped out they may be under different terms. You would need to look at the terms on conditions you signed for both loans.

lee24

The guide refers to under 40 and over 40 for loans taken out from 1990 - 1997. Does that mean under 40 now or at the the time of the loan?
I started my degree in 1997 aged 37 - so should my loans be wiped when i'm 50 later this year?

Lokolo

lee24 wrote: »

The guide refers to under 40 and over 40 for loans taken out from 1990 - 1997. Does that mean under 40 now or at the the time of the loan?
I started my degree in 1997 aged 37 - so should my loans be wiped when i'm 50 later this year?

It is whenever you started.

EmJay

I am just finishing my second year at university and should graduate next year. Am I right in thinking that my loan will not become repayable till April 2012?

If I do not find a job then (I will be 59) will I have to pay off my loan from that part of my widow's pension if it goes above (current) £15,000 a year?

When I become eligible for a state pension in 2016 will that be treated as income for repayment purposes?

Poolie

EmJay wrote: »

I am just finishing my second year at university and should graduate next year. Am I right in thinking that my loan will not become repayable till April 2012?

If I do not find a job then (I will be 59) will I have to pay off my loan from that part of my widow's pension if it goes above (current) £15,000 a year?

When I become eligible for a state pension in 2016 will that be treated as income for repayment purposes?

Your loan goes into repayment the April following graduation.

Repayment is due on taxable income so if your window's pension is taxable. Loans are written off at retirement age.

EmJay

Poolie wrote: »

Your loan goes into repayment the April following graduation.

Repayment is due on taxable income so if your window's pension is taxable. Loans are written off at retirement age.

Thanks for the reply--however, I thought my loan would not be cancelled till I was 75 or dead, not on retirement?

JCC117117

Are repayments taken from monthly pay before or after tax and NI is deducted

londoner1998

Hello All
apologies if my question is answered somewhere else, but I haven't been able to go thorugh all the posts.
I went to uni between 2003-2005 , thyen left my undergrad course to start a Masters (that my dad helped funding).
I started work in Dec 2006 and since then, even though I told my employer straight away (and the SLC) that I had a student loan to re-pay, nothing happened. I let it go, as I tried to get this started about three times and got fed up in the end. Now I reallty want to start paying, but if they deduct if from my salary, there is nothing left at the end of the month and I would struggle (I have very expensive counselling to pay and it is really helping me but it is expensive).
Yesterday I bit the bullet and decided to pay the first 5 pounds towards it online (!). I then decided to set up a standing order for an amount I can comfortably pay every month (in the SLC website says 'if you want to contribute an amount towards you payments or be able to control what you pay', or something like that. Am I being daft or is this a genuine option?

Thanks for reading.
A.

MrsManda

londoner1998 wrote: »

Now I reallty want to start paying, but if they deduct if from my salary, there is nothing left at the end of the month and I would struggle (I have very expensive counselling to pay and it is really helping me but it is expensive).
Yesterday I bit the bullet and decided to pay the first 5 pounds towards it online (!). I then decided to set up a standing order for an amount I can comfortably pay every month (in the SLC website says 'if you want to contribute an amount towards you payments or be able to control what you pay', or something like that.

Paying through the website is additional to them taking it out of your salary.Your T&Cs of the loan is that you pay 9% of anything you earn over £15,000 so the fact you have paid £5 through the website is effectively an overpayment which you cannot get back. If you pay tax via PAYE then you should be having the student loan repayments taken out of that.

From the repayments website

If you do make additional payments, this will have no effect on the size of the repayments you make through your salary. Your employer will continue to deduct 9% of your earnings above the threshold, regardless of whether you have made additional payments. You will, of course, pay off your loan more quickly.

If you are earning over the repayment threshold and no deductions are being taken from your salary from the date advised on your letter, please check with your employer if they have received a Start Notification from HMRC.
If your Employer has not received a Start Notification from HMRC, please call us on 0845 073 8891 to advise your current employment details i.e.

• The name and address of your employer
• Your employer’s PAYE Reference Number
• Your payroll number
• The date you commenced employment with your employer

We will contact HMRC with this information and they will issue another Start Notification to your employer.

londoner1998

Thank you Mrs Manda.
The problem is that they haven't taken anything yet! What do I do now? I don't want to struggle (which is what will happen if I start paying the 9% through PAYE). I woudl have thought there is a way you can control what you pay (is , an amount that is manageable). It seems I might be better of not paying anythign at all!