Repaying Student Loans 2009/10 guide discussion

blizeH

Just reading this article in the Guardian about higher interest rates, and also potential fees in place for paying off the loan early? http://www.guardian.co.uk/money/2011/mar/27/student-loan-mess

With that in mind, would I be better off paying my student loan now, instead of overpaying my mortgage? (interest rate is currently at 3.49%, but drops to 2.99% next year)

Thanks

Oldernotwiser

blizeH wrote: »

Just reading this article in the Guardian about higher interest rates, and also potential fees in place for paying off the loan early? http://www.guardian.co.uk/money/2011/mar/27/student-loan-mess

With that in mind, would I be better off paying my student loan now, instead of overpaying my mortgage? (interest rate is currently at 3.49%, but drops to 2.99% next year)

Thanks

Current loans and those starting in 2011 will remain at the same interest rate and conditions. The article refers to loans for courses starting in 2012.

blizeH

Ah I see, thank you

EGR

Does anyone know if you need to contact anyone once you start employment, or is the money just taken out of your wage?

Oldernotwiser

EGR wrote: »

Does anyone know if you need to contact anyone once you start employment, or is the money just taken out of your wage?

Repayments don't start until the April after you graduate.

fulhamnonny

Hi,

Back in January, I contacted the student loans company as I had not received a statement. They informed me that they had not received any money for the 09/10 tax year from HMRC, even though it had been coming out of my wages.

I was told to call back after the end of the current tax year if I had not still not received a statement with the last tax year's payment from HMRC and they would then launch an investigation and with a week to go before the end of the current tax year, I've still not received a new statement, so I'm going to guess/ presume that if it's not been paid by now, it's not going to be paid within the week.

Does anyone know why they wait a whole year for HMRC? Whilst I will not of been paying interest up until September 10, I'll be accumulating interest on money which should have been paid. Will I be able to get any of that interest back - or at least added to clear my student loan further.

What do the student loans company do when they investigate?

Thanks for your help..

Poolie

SLC have to wait for HMRC to complete the books for the year and employers can take a while to do their paperwork. If they don't have the payment it may be requiring a manual fix which HMRC usually work through from Mid July till April to try and match everybody's repayments up.

All the interest will be back dated on your account once the payment is received. You won't be able to claim any interest HMRC may or may not have earnt as I don't think this is stored in a interest bearing account.

Student Laons will need the details such as PAYE Reference, Employers name, Employers address, total gross salary and student loan repayment amount along with your NI number from your P60 to investigate.

Facetious_2

I have a student loan from 1997 - the old mortgage style one that will require payments of approximately £130 a month for five years. I also have a newer loan from my PGCE year, last year, which I expect to pay around £50 a month for, but this will not require payment until the first loan is paid off. My question is, do I just accept that I'll be in debt for a long time and pay the bare minimum, or is it wise to pay off that killer first loan as soon as I can, by chucking as much money as I can at it? I'm now on a wage of £1500 a month. I am the only earner in the family, supporting a husband and three children. I hate being in debt, but I don't want to be daft and throw savings at it if I'm not going to be much better off.

Poolie

You have to judge your own circumstances but given that RPI inflation is running at 5% and the cost of living is rising I think you have to accept that you may be in debt for a bit longer. I know your interest rate is 4.4% at the moment and I suspect it may be higher when the RPI inflation figure in April is released.

Oldernotwiser

Facetious wrote: »

I have a student loan from 1997 - the old mortgage style one that will require payments of approximately £130 a month for five years. I also have a newer loan from my PGCE year, last year, which I expect to pay around £50 a month for, but this will not require payment until the first loan is paid off. My question is, do I just accept that I'll be in debt for a long time and pay the bare minimum, or is it wise to pay off that killer first loan as soon as I can, by chucking as much money as I can at it? I'm now on a wage of £1500 a month. I am the only earner in the family, supporting a husband and three children. I hate being in debt, but I don't want to be daft and throw savings at it if I'm not going to be much better off.

You don't have to repay the old style loans on a income of £1,500 pm - the threshold is far higher than that. I wouldn't repay anything earlier than you have to, you never know what lies ahead and, when payments have been made, you can't get them back.