Repaying Student Loans 2009/10 guide discussion

Poolie

Sponge wrote: »

Deferment of mortgage-style loans.

I am going to speak to SLC this week, but wondered if anyone here could answer these questions?

According to this webpage:



This MSE webpage states:



As does this one:



I've been defering for several years and my annual income is several thousand pounds below the annual threshold. However, sometimes I earn overtime which puts me within a couple of hundred pounds of the monthly threshold. This year, I may be over the threshold for one of the months.

Do they defer based on just monthly income? (As the first quote suggests.) Or will they look at the bigger picture and see that although that month, or maybe even two of them, was over the monthly threshold, I was still well under the annual threshold? (As per the other quotes.)

I've done a lot of overtime and other extras, e.g. Public Holiday working, over the last few months. My salary to date is still well below the annual threshold and will be by the end of the financial year. However, the 3 payslips I submit in my deferal application (around March time iirc) may include a month where I'm over the £2398, by just a few pounds.

I'm worried they will refuse deferal, although I am well under the annual threshold.

From previous knowledge, they used to take an average of the 3 months payslips you send in to work out your amount against the monthly threshold.

Sponge

Ah. An average may just about be alright.

Sam1123

Hi, hoping this is the right place to ask.

I'm off to uni to study graduate medicine in September. I've worked out in total (not including grants/bursaries) I'll be taking out a student loan of approximately £55000 over the course of 4 years. If it goes according to plan I'll be earning a decent salary within a couple of years of graduating so will begin paying back then.

Now, I have a flat (a long way away from the uni) which I am hoping to sell in the summer. Before reading the article at the beginning of this thread I would have automatically assumed that it would be better to not take the loan out unless absolutely needed, which if I have the property money I won't need to. But am I right in thinking it would be better to use the capital earned from the flat for other purposes like savings or investments, and claim the student loan as per usual? I'm assuming there are no legal barriers, in the application form it mentions declaring income but I don't think selling an owned property would be classified as such.

Any holes in my logic? I appreciate any responses thanks.

maturelearner

Have you read this link?

http://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes


It may help.

amatino

My daughter took out a student loan in 2005 but is angry that they are unable to give her an up to date balance. They say that it goes out in August. Even when she goes on line the figures are incorrect! Is there any one that she can make a formal complaint to or a governing body?

Poolie

amatino wrote: »

My daughter took out a student loan in 2005 but is angry that they are unable to give her an up to date balance. They say that it goes out in August. Even when she goes on line the figures are incorrect! Is there any one that she can make a formal complaint to or a governing body?

The student loan system is dependent on receiving repayment figures from her employer via HMRC every year. Therefore the only way to get an accurate balance is to provide SLC with details of her payments from her payslips and P60s since the last time they received details from HMRC. The statements are usually sent around August time depending when they receive the information and generate the statements.

benji_london

My girlfriend has just received her annual statement. She owes approximately £13k but her interest is about £70 higher a year than her repayments.

What's the best strategy here? It's sad to see that all this money is being taken from her monthly but her debt has been slowly increasing for years now.

ds1980

Does anyone know how interest is calculated on student loans taken out after '98?

Sounds like HRMC send SLC details from my p60 which gives an annual amount of student loan repayments. In the meantime interest is accruing on my student loan evn though the interest should be calculated based on a smaller amount? SLC have told me they go back through the loan once theyve received the details from HMRC and make calculations accordingly but it all sounds a bit fishy to me and I dont see how this can be true based on the fact they only get an annual amount of payment as opposed to monthly payments?

Am i right in thinking im worse off at present even though payments are received every month? My payroll say they send a monthly amount to HMRC which is clearly on my payslips but SLC isnt deducting this from my SL until HMRC send them the relevant info? Looks like someone is sitting on my payments and the interest is working more for them than me? Any help and advice welcome. If im right then i assume this would affect everyone in the same way?

Apologies if this has been covered before or it makes no sense!


ta

Ed-1

ds1980 wrote: »

Does anyone know how interest is calculated on student loans taken out after '98?

Sounds like HRMC send SLC details from my p60 which gives an annual amount of student loan repayments. In the meantime interest is accruing on my student loan evn though the interest should be calculated based on a smaller amount? SLC have told me they go back through the loan once theyve received the details from HMRC and make calculations accordingly but it all sounds a bit fishy to me and I dont see how this can be true based on the fact they only get an annual amount of payment as opposed to monthly payments?

Am i right in thinking im worse off at present even though payments are received every month? My payroll say they send a monthly amount to HMRC which is clearly on my payslips but SLC isnt deducting this from my SL until HMRC send them the relevant info? Looks like someone is sitting on my payments and the interest is working more for them than me? Any help and advice welcome. If im right then i assume this would affect everyone in the same way?

Apologies if this has been covered before or it makes no sense!


ta

They divide the annual repayment they get from HMRC into 12 equal monthly payments and re-apply interest appropriately as if the payments had been received monthly (on the last day of the month). So the interest applied through the year will be adjusted. This will change when real time information has finally been implemented.

Kesman

They recalculate your monthly payments through the information on your P60, so you will pay the correct amount of interest. This should change with RTI as HMRC are now in a position to tell the SLC about your monthly SL deductions...although this isn't happening yet!