Repaying Student Loans 2009/10 guide discussion

fracturedsun

I'm a little worried that my student loan repayments (98/99 loan) may be too low... Thanks to a graduate degree, a period of unemployment and so forth I have only been repaying this year and last year.

The student loan is being deducted from my pay automatically (I'm PAYE) so all good so far, but my total repayments this tax year have been a grand total of £6.00. Last year on the same salary I paid £62, so by my rough calculation I should have paid about £26 this year, I'm confused. Do you only start paying after you've earnt enough that tax year but then how am I paying anything???? Has the threshold changed by enough this year to make this much difference? I can afford to give them £60 at the end of the year if they turn around and say they miscalculated but a £1000 fine would be a real problem, so I want to know the amount is right. Especially as I think I should have paid them £270 a year for the last two years if it's really 9% of the earnings over £15,000. I want to have my facts straight before I start questioning the SLC or my employer.

Turnbull2000

I have a post 98 loan and haven't had a statement since 2006, at which time the outstanding sum was around £5,000. I've since been paying over £100 per month so hopefully I'll have cleared this year.

Who do I call and what info do I need to find out how much is left?

Poolie

fracturedsun wrote: »

I'm a little worried that my student loan repayments (98/99 loan) may be too low... Thanks to a graduate degree, a period of unemployment and so forth I have only been repaying this year and last year.

The student loan is being deducted from my pay automatically (I'm PAYE) so all good so far, but my total repayments this tax year have been a grand total of £6.00. Last year on the same salary I paid £62, so by my rough calculation I should have paid about £26 this year, I'm confused. Do you only start paying after you've earnt enough that tax year but then how am I paying anything???? Has the threshold changed by enough this year to make this much difference? I can afford to give them £60 at the end of the year if they turn around and say they miscalculated but a £1000 fine would be a real problem, so I want to know the amount is right. Especially as I think I should have paid them £270 a year for the last two years if it's really 9% of the earnings over £15,000. I want to have my facts straight before I start questioning the SLC or my employer.

The threshold is £15,000 per annum or £1250 per month.

If you earn over in any given month then a repayment is expected. The repayment is the 9% after the threshold which is rounded down to the nearest whole pound.

I would ask your payroll department how they have calculated your repayments as if you are on the same salary last year then it should be the same amount you repay this year.

Poolie

Turnbull2000 wrote: »

I have a post 98 loan and haven't had a statement since 2006, at which time the outstanding sum was around £5,000. I've since been paying over £100 per month so hopefully I'll have cleared this year.

Who do I call and what info do I need to find out how much is left?

https://www.studentloanrepayment.co.uk will have the necessary contact details for you.
Have you moved address and not told student loans as they may have put a block on your statements and correspondence as they would do if they get mail returned as not known at this address.

It sounds like you could be very close or have repaid your student loan. Best to give them a call otherwise it will be a while before any stop notification is sent to your employer and you would have overpaid by nearly 2 years.

Ticker123

I took out loans in 1995,1996 for a HND and 1997 for the last year of a degree.
I have defered these payments so far, and as of Jan 2011 reached the age of sixty.
I thought the loans were wiped at age sixty? Unfortunatley I missed defereing in one year due to moving houses, and a company called Clarity contacted me in 2006 and the upshot is I pay them five pounds per month. this is then shown on my Honours Student Loan statement. Does this make any difference to wiping the loans.
Any help please

Oldernotwiser

Ticker123 wrote: »

I took out loans in 1995,1996 for a HND and 1997 for the last year of a degree.
I have defered these payments so far, and as of Jan 2011 reached the age of sixty.
I thought the loans were wiped at age sixty? Any help please

Yes they are. I'm in the same situation as you and mine were wiped last year. I telephoned to confirm that and have received no deferment forms this spring.

Rickyp_1981

Hi.

This is my first post about SLC. I graduated in 2006. Have only recently been earning enough to start paying off SL. First payment at the end of this month. However can anybody answer my query?

I paid income tax for my gross pay last month of £500 (no SL payment was taken). This month is the first SL payment, i'm still paying £500 income tax despite the SL payment of £171 being taken. Is this correct?

I called my pay office who said this issue was HMRC so call them. I called HMRC who said tax was not up to them!! call SLC. Called SLC who said income tax payments are not down to them (understandable) contact HMRC.

So i'm stuck now, is the SL payment tax deductable? I believe The SL payment should be taken off my gross income amount, and then income tax assessed on the remainder of my gross income. This what SLC say is correct.

Advice would be great. Many thanks in advance of replies.

Rich P

melancholly

the tax won't change if you have SL deductions; what they've done is correct.

MrsManda

Your student loan is not tax deductable.
You pay 9% on your gross income over £15,000 per year.
You also pay income tax on your gross income.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867326&_dad=portal&_schema=PORTAL

Ticker123

I took out loans in 1995,1996 for a HND and 1997 for the last year of a degree.
I have defered these payments so far, and as of Jan 2011 reached the age of sixty.
I thought the loans were wiped at age sixty? Unfortunatley I missed defereing in one year due to moving houses, and a company called Clarity contacted me in 2006 and the upshot is I pay them five pounds per month. this is then shown on my Honours Student Loan statement. Does this make any difference to wiping the loans.
Any help please