Repaying Student Loans 2009/10 guide discussion

Ed-1

reni89 said:

Hi,
I wonder if someone had a similar situation.
I am repaying my student loan at the moment on Plan 2. My annual salary is £36,771 so I am paying £71 every month. However, I also get bonus every January which is paid in one month added to my monthly salary. SLC took £732 in one go for January 2021 and then back to £71 per month. I know that if your annual salary is below the £27,295 threshold you can claim back the overpaid money, however can you do the same if it is one monthly payment that was much higher and therefore money were taken using the monthly threshold rather than an annual one?
Using the annual threshold I should have paid £1332.36 but my total payment to SLC was £1630 for that period (April 2020- April 2021).

Thank you for any advice

No because you haven't overpaid. You don't pay 9% over the annual threshold unless you are in self assessment. You pay 9% over the pay period threshold (so the monthly threshold if paid monthly).

Redkirby

I have a question on what is classed as income for repayment. I have loans starting 1996 with the last one in 1999.
My income from my job does not meet the threshold to repay. I am a single parent and receive UC, child maintenance and child benefit. All those combined take me over by approx £30 a month. I don’t believe child maintenance should be included, this is due to a divorce and is based on my husbands wage…. It is not earned…. Nor guaranteed. It is not classed as income by UC not by the majority or mortgage companies.
SLC have told me it will be considered and with the repayments quoted it will leave me in some financial difficulties. 

I would be better off not claiming child benefit but this seems to make no sense. 

I can’t find anywhere that tells me what they do and don’t class as income and why…
Any help or advice would be appreciated…

kaMelo

What do the terms and conditions of your loans say is classed as income and who now owns your student loans?
Also, having noticed the dates, are these all mortgage style student loans?

Erudio's position is quite clear, income doesn't have to be earned to be classed as income.  Disability related benefits such as PIP/DLA ESA and the LCWRA element in UC etc. are not counted as income but everything else such as UC, Tax Credits, maintenance payments and child benefit are classed as unearned income and count towards you annual total. Even things like interest payments or dividends need declaring if I remember correctly.  

Edited to add;
Erudio guidance on filling out deferment forms.
https://www.erudiostudentloans.co.uk/content/dam/arrowglobal/erudio/News/Erudio How to Guide 2022 - 2023 Final.pdf

The reason I ask about your original terms are important, If your original agreement laid out what counted as income regarding repayment then as debt purchasers, Erudio Thesis or HS Loans have to abide by those terms, they cannot change them. I remember reading a (very long) thread on mumsnet some time ago debating this issue amongst others but it was less than clear whether the terms were specific regarding income. (and there was so much noise it was difficult to extract the facts)
https://www.mumsnet.com/talk/legal_money_matters/2028211-erudio-student-loans?page=1


If you still have the terms you agreed to when you took out the loans then I'd suggest that would be the first thing to do, read them in detail to see what they say specifically what is or is not included as income..

Redkirby

Thanks for this. I have one HSL and 3 with Erudio. I dont have a copy of the initial loan agreement so will need to try and get hold of these.
It seems, like you say, that they include all income regardless is earned,.. so basically I would be financially better off not claiming my child benefit as this would then take me below the threshold and leave me better off than if I was repaying.
I understand I signed a contract and this needs to be abided with but being in an abusive relationship and getting divorced wasn’t part of my plan… 😔

Stacey1021

HI

I have student loans going back to 1999-2003, 2006-2007 and 2010-2011

I am currently paying them off each month, however the base rate is that high at the moment, i am not making a dent in the amount to be repaid back. Last year i repaid £2k and of that £1800 was interest. I have circa 20K in student loans, due to the courses I undertook. At the rate of repayment, I will still be paying back at 65. Is it worth taking a bank loan over 10 years to pay back?

What is not clear is do they all merge in Plan 1 or are they a mixture of repayments.

Is anyone able to provide useful and helpful suggestions. I would be very grateful.

Thanks in Advance.

wwfwilla

Just read the guide, its very helpful. I went to uni between 2001-2004 and graduated aged 21.

I'm now 42 and if i'd gone a few years later i'd have had it wiped when turning 47. But I have to pay until pension age which for me is 68. Can't believe I have another 21 years of paying it off just because I didn't go to uni a couple of years later.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81856747#Comment_81856747

On the plus side, your fees were a lot lower, only about £1,000 a year. Your total loan size would have been much lower, so it may be that you will clear the loan at some point.