Repaying Student Loans 2009/10 guide discussion

MangoMuffin

I've just finished my first year and I know that the article says not to repay yet but I hate having the temptation of spending the left over loan on pointless things when I could just pay it back now (well, not right now as I'm about to explain). Due to bank troubles at the moment, my online banking is frozen for no good reason (actually, no reason at all) and will probably sort itself out in September. What I really want to know is when does the interest get applied as I don't want to pay the 4.4 or 1.5% on the loan when I could be paying some of it off now. Is it on the 31st of August that the following year's interest gets added, so the idea is pay off before 31st to get 0%? Obviously, I can't pay off the full amount but it would be really annoying to be charged interest just because my bank is incompetent!

Thanks in advance for any answers at all.

MrsManda

MangoMuffin wrote: »

What I really want to know is when does the interest get applied as I don't want to pay the 4.4 or 1.5% on the loan when I could be paying some of it off now. Is it on the 31st of August that the following year's interest gets added, so the idea is pay off before 31st to get 0%?

You start paying interest on your loan as soon as you recieve it. As the loan interest rate is currently 0% if you pay it off before the end of August you'll not have paid interest, or rather the interest you'll have to pay is 0%

Oldernotwiser

renate wrote: »

I'm a bit confused when it is pointed out that crrently student loans are interest free. I have lookedat my daughter's annual statements and from 2008 - 2009 she has accrued plenty of interest on her loans. Have we been misinformed by the student loans company or have I just misunderstood?

Interest rate was 0% for 2009/2010.

katemoz

Hi all... has anyone here had to claim back a refund for overpayments recently? - if so how long did it take to come through? I wrote to the SLC at the beginning of this month (with payslips, bank details and my calculation of what they owe me) and am just wondering how long to leave it before I phone them to chase it up.

Thanks!

Poolie

I would give them a call to check they have received the correspondence. They are likely to be busy dealing with lots of letters from people who have recently received their statements since the HMRC returns will have been received the last few months.

KingKenny

1) What is the interest rate for post 1998 loans 2010 to 2011? Not heard nothing yet?


2) If you are not working you pay nothing, or if you are working you pay 9% of everything over £15k, but what if you are not working but have say an income of £6k from savings interest?

MrsManda

KingKenny wrote: »

2) If you are not working you pay nothing, or if you are working you pay 9% of everything over £15k, but what if you are not working but have say an income of £6k from savings interest?

Do you need to fill out a self assessment form for the HMRC?:

Income above a certain level from savings, investment or property If you don't already complete a tax return, you'll need to do so if you receive any of the following:

• income from savings and investments of £10,000 or more
• income from untaxed savings and investments of £2,500 or more
• income from property (before deducting allowable expenses) of £10,000 or more
• income from property (after deducting allowable expenses) of £2,500 or more
• annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
• income from the estate of a deceased person on which tax is still due

If you do then the HMRC should inform you whether you need to repay your student loan:

Unearned income

If you have unearned income of more than £2,000 a year, for example interest on stocks, shares or savings, you may have to make additional student loan repayments.

HM Revenue & Customs will advise you if you need to make any payments directly to them in respect of student loans once they have assessed any Self Assessment tax return you submit to them.

More info from the HMRC

Poolie

Interest rate for Student Loans post 1998 for 2010/11 year has to be announced before 5:00pm on Friday. I suspect they will try and set the rate at 4.4% but the condition will kick in and interest will be 1.5%. However if they don't say a word then it will be 0% for another year. I am trying to find out myself at present

s0198362

Poolie wrote: »

Interest rate for Student Loans post 1998 for 2010/11 year has to be announced before 5:00pm on Friday. I suspect they will try and set the rate at 4.4% but the condition will kick in and interest will be 1.5%. However if they don't say a word then it will be 0% for another year. I am trying to find out myself at present

Confirmed as 1.5 % (I think) for income contingent loans, and 4.4 % for old loans

http://www.slc.co.uk/media%20centre/news_views.html

Poolie

It is 1.5% for post 1998 loans and 4.4% for pre 1998

Also should note that post 1998 rate will change if the BoE raises its base rate which is not expected to happen for a while as BoE will be trying to remove the £200Bn of stimulus money from the economy first before they start tackling the interest rate to control inflation.