Repaying Student Loans 2009/10 guide discussion

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? 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

Unfortunately the arrears on loans aren't wiped when you reach 60, although the main body of them is.

Rickyp_1981

MrsManda and Meloncholly thank you for your responses.

SO let me see if I have this correct?:mad:

For example if my gross was £2000, SL wanted their 9% of my pay over £15000 which is £67.50 per month. So should this mean that I pay income tax on £2000 or £1932.50?

If the student loan payments is not taxable then why am I paying tax on £67.50 which is going out of my a/c.

Child care voucher scheme and pension contributions come straight out the gross income and the remaining income is then taxed, so why is a SL repayment not done in the same way?

The way I see it I'm paying income tax on my full gross. The SL payment should not be taxed

Poolie

On your £2000 you would be liable for Income Tax (after the tax free monthly allowance is deducted), National Insurance and Student Loans are all based on GROSS salary.

The £67 (Student Loans is rounded down to the nearest pound each pay period) is being taken correctly. This does not mean it is not taxable just means it is deductable from your salary. http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867311&_dad=portal&_schema=PORTAL

Some items are deducted in accordance with HMRC prior to taxation. Student Loans are deducted from the gross salary end of story.

Student Loans should be seen as another tax and not just a deduction from your salary after tax as that is incorrect.

melancholly

Rickyp_1981 wrote: »

SO let me see if I have this correct?:mad:

i guess whichever way you view it, it is what it is...... i'd accept and move on because it won't be changing either......(that sounds unduly harsh but this isn't something worth wasting energy on!). what they're doing is what they've always done and what's in all their T&Cs on repayment.

Rickyp_1981

Poolie and Meloncholly.

Many thanks for your help. It hurts to pay tax on intrest but I hate being bent over. Notwithstanding this I'll just soldier on. Only 7.4 years until I'm repaid at my current rate (not accounted for intrest but if it stays at 1.5% it should be ok) Of course it won't stay low.

Better now than being a future debter. My heart bleeds for the youth of today. No jobs, too much cost to get a degree. Join the military.:A

Ticker123

I wrote to student loans re wiping loans after age of sixty this was their reply"
Thank you for your e-mail.
Accounts can be cancelled under the age-related terms so long as you are not in breach of any obligation to us.

Unfortunately your loans will only be written off once you have fully paid the arrears and charges. Whilst any of these remain on your account, the rest of your balance will not be cancelled."

teecha

Hi, I was just browsing through the info about student loans when I spotted something that looks a little misleading. In the section about pre-98 loans where the interest rate is now 5.3% it suggests that it doesn't cost anything really because it is linked to inflation. It claims this is because 'wages and the price of goods' increase with inflation. Where does that come from? I have had a pay freeze for 3 years!!! When my employer, The Manchester College, decides to start paying 'cost of living' pay rises again I very much doubt that they will compensate for the 'lost' years.

Poolie

teecha wrote: »

Hi, I was just browsing through the info about student loans when I spotted something that looks a little misleading. In the section about pre-98 loans where the interest rate is now 5.3% it suggests that it doesn't cost anything really because it is linked to inflation. It claims this is because 'wages and the price of goods' increase with inflation. Where does that come from? I have had a pay freeze for 3 years!!! When my employer, The Manchester College, decides to start paying 'cost of living' pay rises again I very much doubt that they will compensate for the 'lost' years.

This is the standard information SLC provide. The interest is only increasing with the generalised inflation rate and does not account for individual circumstances. That is one problem with inflation it is a generated rate across a wide range of goods and services.

missyi

I have been paying my student loan for 6 years but have only knocked £1500 off the 12k balance.
I've just done the quick calculator and it says I'll be paying for another 13 years! Plus they take a whopping £160 a month from me.
I could pay it off with a loan in 3 - 5 years.
Def think this is the way to go

Oldernotwiser

missyi wrote: »

I have been paying my student loan for 6 years but have only knocked £1500 off the 12k balance.
I've just done the quick calculator and it says I'll be paying for another 13 years! Plus they take a whopping £160 a month from me.
I could pay it off with a loan in 3 - 5 years.
Def think this is the way to go

So, what happens if you're made redundant or develop an illness? How will you pay a commercial loan back then?