Repaying Student Loans 2009/10 guide discussion

Poolie

Lukasx123 wrote: »

A lot of Martin's advice about paying off student loans seems to focus on prioritising higher-interest debts over student loan repayments.

Unfortunately, I'm now in a situation where I have been paying off various debts since my uni graduation (back in 2000) and deferring my student loans (as Martin suggests), and even now I still have a long-term loan, two sizeable credit card balances and my bank overdraft to clear, but because my income has recently passed the threshold for deferment, I have finally begun paying about £120 per month off my student loans, whilst also making over £300 per month of payments on these other various debts.

Obviously, I would prefer to continue to prioritise paying more off my other higher-interest debts and continue to defer my student loans until the other debts are cleared (as Martin suggests), however I'm not aware of any available options for organising my debts in this way now that my income has reached the threshold.

Can anyone tell me if there is any way to make an arrangement with the student loan companies to clear other existing debts over a pre-agreed period (without creating any new debt),and then agree to resume payments on the student loans when my existing debts are cleared?

Do you repayments get taken direct from your salary? If so, unfortunately there no option to defer if you are above the repayment threshold.

If they get taken from your salary, then as long as your income is still below the deferment threshold you should be allow to defer them for 12 months.

The repayment and deferment thresholds are listed on the student loan repayment portal.

Lukasx123

Poolie wrote: »

Do you repayments get taken direct from your salary? If so, unfortunately there no option to defer if you are above the repayment threshold.

If they get taken from your salary, then as long as your income is still below the deferment threshold you should be allow to defer them for 12 months.

The repayment and deferment thresholds are listed on the student loan repayment portal.

Actually, I pay by direct debit. Does that make a difference?

Poolie

Lukasx123 wrote: »

Actually, I pay by direct debit. Does that make a difference?

If it gets taken by direct debit, then you should be able to defer the repayments if you are earning below the deferment threshold £27,813

Mitchoverseas

Hi. I have a pre-1998 loan and am currently deferring my loan and have been for a few years now due to not earning above the threshold living abroad. In the article it states that my loan will be wiped clean after 25 years or when I turn 50. My question is does the 25 years relate to when I left education and started employment (aged 21) or once I actually start paying? I did repay for a short period 5 years ago and am worried that the 25 years will start again from after then. I am trying to work out whether to pay it all off using my husbands savings (saving the interest that will keep being added) or keep deferring as it is unlikely I will earn over the threshold before I turn 46 but maybe by the time I turn 50. (I am now 34 with a young child and hopefully more in the future).

Spoon_s

Hi I was looking for a bot of advice about repayment of my loan, I left education in 2009 and have since then been earning over the threshold for repayment.

My income varies from month to my and so the amount charged for my repayment amount varies each month. This has meant that each year when it comes to April time I have overpaid based upon 9% of my income over the threshold.

Am I able to claim this overpayment?

Poolie

Mitchoverseas wrote: »

Hi. I have a pre-1998 loan and am currently deferring my loan and have been for a few years now due to not earning above the threshold living abroad. In the article it states that my loan will be wiped clean after 25 years or when I turn 50. My question is does the 25 years relate to when I left education and started employment (aged 21) or once I actually start paying? I did repay for a short period 5 years ago and am worried that the 25 years will start again from after then. I am trying to work out whether to pay it all off using my husbands savings (saving the interest that will keep being added) or keep deferring as it is unlikely I will earn over the threshold before I turn 46 but maybe by the time I turn 50. (I am now 34 with a young child and hopefully more in the future).

The 25 years is last on the date of your last student loan (http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867066&_dad=portal&_schema=PORTAL).

The paying it off to save interest v leaving it to pay off each month is only a question you can ask as you will have an idea of your salary over the next 16 years and how this will affect your life goals.

Poolie

Spoon_s wrote: »

Hi I was looking for a bot of advice about repayment of my loan, I left education in 2009 and have since then been earning over the threshold for repayment.

My income varies from month to my and so the amount charged for my repayment amount varies each month. This has meant that each year when it comes to April time I have overpaid based upon 9% of my income over the threshold.

Am I able to claim this overpayment?

Unfortunately not, if you were liable for student loans that particular month. You would only be able to reclaim if your total salary for the year was below the repayment and you had overpaid due to a bonus payment one month.

Student Loans take the total amount you have repaid throughout the year and equalise this out of your loans over 12 months so they do not care if your pay varies each month.

ncjharris

Hi there,

quick question about student loans and tax.

I have the (mis)fortune of having to complete a Self Assessment this year for the first time. One of the questions it asks is have Student Loan deductions been made in the period; and if so what is the figure (from the p60).

I have entered that £1213 was deducted in the period (which is the figure within my P60), but then in my overall tax calculator it adds a figure of £3,010 to my amount owed. I am not too sure what this is - is it a taxable amount (I didn't think that student loans were taxable). Is it a charge for the loan?
I thought i'd post here before I spoke to the HMRC.

Dunroamin

ncjharris wrote: »

Hi there,

quick question about student loans and tax.

I have the (mis)fortune of having to complete a Self Assessment this year for the first time. One of the questions it asks is have Student Loan deductions been made in the period; and if so what is the figure (from the p60).

I have entered that £1213 was deducted in the period (which is the figure within my P60), but then in my overall tax calculator it adds a figure of £3,010 to my amount owed. I am not too sure what this is - is it a taxable amount (I didn't think that student loans were taxable). Is it a charge for the loan?
I thought i'd post here before I spoke to the HMRC.

Have you made allowances for interest?

Poolie

ncjharris wrote: »

Hi there,

quick question about student loans and tax.

I have the (mis)fortune of having to complete a Self Assessment this year for the first time. One of the questions it asks is have Student Loan deductions been made in the period; and if so what is the figure (from the p60).

I have entered that £1213 was deducted in the period (which is the figure within my P60), but then in my overall tax calculator it adds a figure of £3,010 to my amount owed. I am not too sure what this is - is it a taxable amount (I didn't think that student loans were taxable). Is it a charge for the loan?
I thought i'd post here before I spoke to the HMRC.

It is not a charge for your loan, but it relates to other entries you have made in your self assessment such as other income streams.

Apart from your salary, have you had any additional income from another source during the year? If so, this is more than likely liable for student loans which is why the amount has increased from the £1213 on your P60 to the £3,010 on the P60.