Repaying Student Loans 2009/10 guide discussion

ookle

Dear MSE'ers with student loans,

When have you paid off your loan, only to get a letter 3 years later, saying that you actually haven't? A warning to you all and I would love to hear if anyone else is in the same boat.

I received a letter 3 years ago, saying according to SLC records, I was nearing repayment in full of my student loan, so I should call them to make the final payment. This I did. They calculated that my last payment to pay it off in full should be £21. So I paid it. I was told that if it would be anymore, that SLC would just write if off. If found this a bit weird, but then nothing the SLC do is sensible...so I was chuffed I'd paid it off...

3 years later, I get a letter saying that actually I haven't paid it off, because of the time lag in getting the repayment info from HMRC, they overcalculated what I would pay via HMRC to SLC. What I was told was wrong. They don't write it off. They sit on it for 3 years, tell you that you still owe them money and then whack interest on top for the 3 years that they've done nothing about it.

Reckon I've got any chance of complaining and not paying the 3yrs interest???

Ed-1

ookle wrote: »

Dear MSE'ers with student loans,

When have you paid off your loan, only to get a letter 3 years later, saying that you actually haven't? A warning to you all and I would love to hear if anyone else is in the same boat.

I received a letter 3 years ago, saying according to SLC records, I was nearing repayment in full of my student loan, so I should call them to make the final payment. This I did. They calculated that my last payment to pay it off in full should be £21. So I paid it. I was told that if it would be anymore, that SLC would just write if off. If found this a bit weird, but then nothing the SLC do is sensible...so I was chuffed I'd paid it off...

3 years later, I get a letter saying that actually I haven't paid it off, because of the time lag in getting the repayment info from HMRC, they overcalculated what I would pay via HMRC to SLC. What I was told was wrong. They don't write it off. They sit on it for 3 years, tell you that you still owe them money and then whack interest on top for the 3 years that they've done nothing about it.

Reckon I've got any chance of complaining and not paying the 3yrs interest???

It does sound a bit strange. How much are they asking you to pay? To be fair, the interest should actually benefit you as it has only been 1.5% for the last few years which is sub-inflation so in real terms the balance would have reduced.

vicmac

hi all,
i have taken 1995 loan. i am now 60 soon to be written off. anybody written a letter/template to exit this?
regards

Dan_the_Man_3

Hi All,

My better half did her undergrad degree starting in September 2009, finishing in June 2012. She got a full non-London student loan for this, totalling around the £20k mark for fees and maintenance over the 3 years. She then moved to London to do a one-year-PGCE, scooping up the full London student loan for 2012/13 totalling about £15k because the fees had just gone up to £9k.

The two loans are now payable as she was working as of the start of this tax year, but because she had one loan under the 'older' system and one loan under the 'newest' system, how is her repayment calculated? What is the threshold?

I've tried to look on the student finance website but it doesn't seem to think anyone could be repaying the post-tuition-fee-hike loans yet as most people's courses will be 3 years long...

I ask this mainly because for various reasons it looks like she will actually land somewhere between the £15k and £21k thresholds of income this tax year as a one-off and as such I was wondering what this means in terms of how much she should be paying back...

Thanks to any Student Finance gurus out there who can answer this!

Dan

Ed-1

Dan_the_Man wrote: »

Hi All,

My better half did her undergrad degree starting in September 2009, finishing in June 2012. She got a full non-London student loan for this, totalling around the £20k mark for fees and maintenance over the 3 years. She then moved to London to do a one-year-PGCE, scooping up the full London student loan for 2012/13 totalling about £15k because the fees had just gone up to £9k.

The two loans are now payable as she was working as of the start of this tax year, but because she had one loan under the 'older' system and one loan under the 'newest' system, how is her repayment calculated? What is the threshold?

I've tried to look on the student finance website but it doesn't seem to think anyone could be repaying the post-tuition-fee-hike loans yet as most people's courses will be 3 years long...

I ask this mainly because for various reasons it looks like she will actually land somewhere between the £15k and £21k thresholds of income this tax year as a one-off and as such I was wondering what this means in terms of how much she should be paying back...

Thanks to any Student Finance gurus out there who can answer this!

Dan

See my post #2 in this thread: http://forums.moneysavingexpert.com/showthread.php?t=5043998

And FYI, post-2012 loans only enter repayment at the earliest on 6th April 2016 so no repayments will be allocated towards this loan until then.

Also, the repayment threshold for pre-2012 loans is not £15k anymore; it has risen with inflation every year since 2012 and so currently stands at £16910 (and will increase to £17335 on 6th April 2015).

Dan_the_Man_3

Thank you for your help, but unfortunately that link doesn't work for me for some reason

I didn't realise that the April 2016 limit would apply to her loan as well - I presumed it was a proxy for 'the April following your graduation' - but that makes sense, thanks!

Didn't realise that about the inflation increase either - good to know.

Thanks!

Ed-1

Dan_the_Man wrote: »

Thank you for your help, but unfortunately that link doesn't work for me for some reason

I didn't realise that the April 2016 limit would apply to her loan as well - I presumed it was a proxy for 'the April following your graduation' - but that makes sense, thanks!

Didn't realise that about the inflation increase either - good to know.

Thanks!

Oops, try now :beer:

Dan_the_Man_3

I see!

Thank you very much!

Chris4

I have a student loan of £25,000 (starting 2009/10), which is costing me about £31.25 a month (1.5% interest).

I currently have £15,000 savings at 3% AER (2.4% after tax) [Santander 123], earning me about £30 a month.

I'm earning a salary of £22,000 and paying off £50 of my student loan a month.

I hope those calculations are correct; if not, please correct me.

I need some advice please - Should I continue to save? Pay some off?

Lokolo

Chris4 wrote: »

I have a student loan of £25,000 (starting 2009/10), which is costing me about £31.25 a month (1.5% interest).

I currently have £15,000 savings at 3% AER (2.4% after tax) [Santander 123], earning me about £30 a month.

I'm earning a salary of £22,000 and paying off £50 of my student loan a month.

I hope those calculations are correct; if not, please correct me.

I need some advice please - Should I continue to save? Pay some off?

If the savings is earning more than the loan is costing you then you keep the savings. And vice versa.

£15,000 is gaining you £360 a year in interest.
Using that to pay into student loan would reduce your interest annually by £225. So you would be £135 worse off.