Repaying Student Loans 2009/10 guide discussion

lxpeanut

Have a morgage style loan and applied to defer but have been refused because one month overtime and expenses took it over the threshold. I've complained and I'm going to reapply with this months pay slip. However once again its over the threshold because of overtime and expenses but not if you dont include the expenses. However on the phone they said expenses were included in the calculations. Is that right?

If they refuse to defer I can not pay the £90 a month so my only choce would be to refuse to pay. I'm on a debt management plan and the only way I can afford to pay would be to include my student loan in the debt management plan. Can I do this?

Poolie

lxpeanut wrote: »

Have a morgage style loan and applied to defer but have been refused because one month overtime and expenses took it over the threshold. I've complained and I'm going to reapply with this months pay slip. However once again its over the threshold because of overtime and expenses but not if you dont include the expenses. However on the phone they said expenses were included in the calculations. Is that right?

If they refuse to defer I can not pay the £90 a month so my only choce would be to refuse to pay. I'm on a debt management plan and the only way I can afford to pay would be to include my student loan in the debt management plan. Can I do this?

They average the amount out over the 3 payslips to then work out the total for the year. It is done on gross so everything on your payslip. It must be a fair amount to put you over.

Not sure about the debt management plan and SLC in this case.

lxpeanut

Poolie wrote: »

It must be a fair amount to put you over.

It was but it was money I had paid out to do my job and they are paying me back we dont have business cards and we can do a lot of millage in a month so the expenses can bew a lot. It is not income and its not taxed because it is not income. I can't understand how they can include it as that in their calculations.

Poolie

They will include anything which appears on your payslip. You really need 3 payslips without any extras.

physicist_2

I've got a post 98 loan that I've been repaying via PAYE on my main (>>15K) salary. However I now also have a second income of 6K p.a. from a part-time job. Do I have to make additional student loan repayments from that salary as well and if so can this be done via PAYE too? I'd rather not pay my loan off any faster given that I'll want to take out a mortgage soon, but also don't want to get in trouble if I'm obliged to pay 9% of my second salary and haven't been doing so. I'm pretty sure that I ticked a box saying I needed to pay off my loan when I filled in the tax paperwork for my second job but assume that the employer hasn't bothered to make any deductions because it isn't making me over 15K p.a. I can't find any clear info on the student loans or directgov websites
Thanks

Poolie

You would only be due to pay on your second job if the salary increased to £15k.

KT£

I'm so confused!
I took out a loan in 98/99 (and the subsequent years) and have always paid it back through my payslip.
I know only owe ~£2900 and have been sent a letter saying I should change to direct debit to avoid accidentally overpaying the loan!
Is it more expensive to do this via DD? If I overpay via my payslip will they pay me back?
Argh! (and thanks!)

Poolie

The Direct Debit will be for 2 years only to stop you overpaying. If you end up overpaying it could take a long time to resolve by the time you tell SLC, they tell HMRC and HMRC tells your employer. Employer has up to 42 days to stop taking the repayments so that could be 2/3 months payslips. Then you have to start getting the refund from SLC.

You can always call SLC to discuss how much the Direct Debit would cost you each month, just means you don't pay via paye anymore.

KT£

I will give them a ring.
If the student loan is taken from my payslip after tax is deducted (?) then I guess it wont make a difference if I use DD instead??

Thanks again.

Poolie

You Student Loan is deducted based on your gross salary not after tax. So you have the extra money each month which will not attract more tax or NI.

It should work out to be about the same. I am not 100% sure how they calculate it.