Repaying Student Loans 2009/10 guide discussion

Poolie

booggerboy wrote: »

I have a pre 98 loan and one from 2002, and have just started having to pay back both, as my salary now "exceeds both repayment thresholds" (i.e. is over 25K (ish))

Does anyone have any experience of how SLC handles this? I'm not sure I'll be able to afford repaying them both at the same time!

BB

Was your 2002 for a PGCE Course? If so, they you should have the option to pay one back first. If not then you would not be given the option. Your 2002 will only be 9% above the £1250 month threshold

*Kat*

I have some questions. I recently received a statement form SLC. They have been taking money from my wages last year because I didn't complete some modules in 3rd year so couldn't progress to 4th (resit these 2009-2010). Anyway, my statement only credited me with £4!? What?! Any ideas why? Also, I didn't make £15k last year (only like 7k) so I read I can claim the payments back, but I dont want to, I'd rather just pay them off.

Many thanks.

MrsManda

*Kat* wrote: »

I have some questions. I recently received a statement form SLC. They have been taking money from my wages last year because I didn't complete some modules in 3rd year so couldn't progress to 4th (resit these 2009-2010). Anyway, my statement only credited me with £4!? What?! Any ideas why? Also, I didn't make £15k last year (only like 7k) so I read I can claim the payments back, but I dont want to, I'd rather just pay them off.
Many thanks.

Did it say that it was a final statement or an interim?
Yes you can claim your overpayments back if you wish.

booggerboy

Thanks Poolie,

Yes, it was for a PGCE, so fingers crossed SLC will let me pay 'em back one at a time.

BB

Poolie

booggerboy wrote: »

Thanks Poolie,

Yes, it was for a PGCE, so fingers crossed SLC will let me pay 'em back one at a time.

BB

May be best to write to them asking if that is possible since it was for PGCE. To keep the arrangement of paying one first you have to carry on continuing to pay the other loans. If you stop or defer then they are allowed to start taking both repayments again.

Fiona1987

Can you tell me if the £15,000 repayment threshold is on basic salary or inclusive of overtime?

MrsManda

Fiona1987 wrote: »

Can you tell me if the £15,000 repayment threshold is on basic salary or inclusive of overtime?

It's everything you earn so if you get paid over £1250 in a month you will repay 9% of everything over £1250.
If you've earned less than £15,000 over the financial year then you can reclaim any overpayments from the SLC.

Patrick_Vieira

Hi

I have a loan from 2004 which now stands at £10800. I checked this by adding the amounts i've been repaying on the student loans calculator on their site.

The sum they claim i owe does not take into account the last 14 months of payments i have made through working. I dont know if there was a problem in the tax office not informing them, but how can i make the Student Loan Company update the amount i owe down to what it should be?

Also, I am moving abroad and have been thinking about paying off the loan. I have read what Martin said about not doing that, but, i am off the New Zealand, and the cost of exchanging and sending money to the UK each month is about £15. So on top of the money i'd have to send to the SLC, i'd pay another £180 a year in conversion fees.

Based on Martins calculator, i have 10 years left on my loan. So over ten years i'd pay another £1800 in bank/conversion fees, as i'm not intending to move back in the near future, if at all.

Shall i be done with the loan now? I'd have a few hundred quid left as life savings, but then i can start fresh again in NZ without having any debts.

Sorry for the essay

Poolie

How do you know SLC are 14 months out of date? When did you last receive a statement and which tax year did it refer to? Did it have the correct deductions for the tax year? Did you change jobs during the tax year. SLC always work a tax year behind as they are never updated during the tax year. If you want a current balance you can call them up but make sure you have all your payslips and P60s at hand.

The calculator on MSE makes some assumptions about interest rates and repayment threshold which can't always be guaanteed especially when your looking that far ahead.

If you moving to NZ I am not sure what savings and support levels you have to show to get the necessary visas as there may be a period when you arrive while your not working.

You can make large payments to SLC which they will then use to take the necessary month repayment this would reduce the cost but you would require to send a large amount to cover you. If you move and don't have any income then you would not be expected to make any repayments straight away.

Another thing to consider is the repayment threshold for New Zealand as it may not be the same as the UK due to the different standards of living. This information can be found on the SLC or Student Repayment website.

Patrick_Vieira

Hi Poolie

I received a statement up to April 2010 and it didnt have the deductions i'd been making from the previous July. I dont know when exactly the Tax Office get in touch with SLC. On the website its updated to July 2010, but does not take into account any repayments since July 2009.

In NZ i have a job already, which if you translate the salary is more than what i earn in the UK by a £2000. So if they give me a figure i have to pay back, it'll be more than what i was doing previously. Also, this could change at any time. If the strength of the pound picks up vs the NZ$, then my NZ salary could turn out to be less than what i had in the UK and then i'd be paying a fair chunk of my salary to make the payments in £'s. I'm thinking of paying as much as i can in one big payment and then the remainder over the year.

The payment threshold in NZ is the same as the UK, £15k.