STUDENT LOAN - To pay or not to pay...

dc399uk

Folks

I am after some advice. I took out a student loan in 1999, graduating in 2002 with about £11k worth of loan to pay back. I went travelling for a year, came back and started doing some temping etc in the UK. Neededless to say the SLC were quickly onto me and I began payments back. Following this I did a PGCE for a year, and although did not borrow any more money from SLC didn't pay anything back either in this time.

I didn't go into teaching, but instead work for the government (public sector). I have been working for this employer for 3 years and earn well in excess of the £15k 'threshold' for paying back the student loan. When I started working here I declared I had a student loan, gave them old P45s etc. However I have NEVER had a student loan deduction via PAYE in the 3 years since starting.

What should I do? I am very likely to continue working for my employer for the rest of my working life - should I call up the SLC and start waving goodbye to £150 every month or would it be better to 'wait'...? I get the annual statement from them - I am concerned they may one day catch on and try to reclaim it all at once. I've never hidden what I do - it just seems they haven't caught up with me and I don't know whether to prompt them!

Any help appreciated.
Dave

Lollypop75

This is quite common, I think. I'm not sure exactly who's fault it is. It's kind of annoying, though. One of my friends went into a very well paid job straight after uni, but two years later still wasn't paying off her loan. I, on the other hand, went into slightly below average paying job (even more below average for London) and they found me straight away. Also now that I'm unemployed I have to fill in a form convincing them that I can't pay anything at the moment.

I don't think they'd ask you for thousands when they do find you, but you probably should pay it back anyway. Or at least try. I've read of people contacting their employers, HMRC and the SLC but all of them say it's someone else's fault. I think eventually they just gave up and keep the money!

Lokolo

SueSueSue wrote: »

Is there not a box on P45's and P46's which indicate loan deductions. Guessing this hasnt been completed.

Yes there is a box. And you can not tick it, although I don't condone this.

ceminem

£150 a month so guessing your on £35k. The student loan is linked to your NI number, when P60s go in at the end of the tax year if SLC pick up through HMRC that you are above the threshold then they may well contact you to make up payments which you are liable for as you signed up for the terms by taking the loan out. Otherwise it is your duty to inform your employer to deduct loan payments, or you can chance it that SLC don't find out but risk then asking for backdated payments.

dc399uk

Thanks guys - I know I am just delaying the inevitable - just annoying as I've not made any attempt to hide it.

I think I will attempt to sort it out - but from reading through other posts even that looks difficult!