Student Loan - how can I avoid paying it back?

byrno

Hi all,

Long time lurker, new poster here. I have a question regarding paying back my student loan.

I am currently paying back my SL and it comes out of my earnings along with tax, NI, pension etc, so I have never really noticed it.

However, I am soon due to receive a large amount of backpay from a previous job (about £20k) and am worried that as this is money I earned over a period of about 5 years I am going to end up losing a decent chunk of it to the student loans company. Is there anyway I can not pay them from this lump sum and just continue to pay them as I have been ie. from my monthly earnings?

Thanks in advance for any advice.

byrno

CLAPTON

if it's pay then your (ex) employer will deduct tax, NI and student loan in the normal way.

housebuyer_abc

byrno wrote: »

Hi all,

Long time lurker, new poster here. I have a question regarding paying back my student loan.

I am currently paying back my SL and it comes out of my earnings along with tax, NI, pension etc, so I have never really noticed it.

However, I am soon due to receive a large amount of backpay from a previous job (about £20k) and am worried that as this is money I earned over a period of about 5 years I am going to end up losing a decent chunk of it to the student loans company. Is there anyway I can not pay them from this lump sum and just continue to pay them as I have been ie. from my monthly earnings?

Thanks in advance for any advice.

byrno

Why shouldn't you pay?

If it had been paid on time then the monies would have been deducted...

If you didn't want to pay back the money you borrowed then you shouldn't have taken it in the first place. I believe the common word for behaviour like this is theft. If we are being charitable I suppose we could downgrade that to avoidance...

Either way neither definition shows you in a good light, and any other definition anyone dreams up is just to be nice as the simple facts that you owe money, agreed to pay it back in a percentage of earnings and now are trying to renage on that deal are indisputeable.

JimmyTheWig

Is it a question of how repayments are calculated?
Is there a chance that the OP will repay more with this money coming in as a lump sum now than if it had been paid on a monthly basis at the time?

The OP has no moral obligation to pay more just because the money has come in late.

byrno

Let me just make this clear, that I am NOT trying to get out of paying it all together, I was just wondering if there was an option, in instances like this, where you could could not pay it out of a lump sum and continue to pay it as I have been, as i fear losing a large amount of it, not to mention the large amount of tax and NI I am going to pay as well.

I would like to point out, that I (and approximately 20 others) have been waiting 3 years to get this money. That I have already worked for and earned (since 2003).

So don't talk to me about theft!

JimmyTheWig

Byrno,

Please confirm if you are wanting to find a way to pay less than you would have paid if your wages had been paid on time? Or if you are wanting to find a way to pay no more than if that had happened?

Thanks,
Jim

McKneff

byrno wrote: »

Let me just make this clear, that I am NOT trying to get out of paying it all together, I was just wondering if there was an option, in instances like this, where you could could not pay it out of a lump sum and continue to pay it as I have been, as i fear losing a large amount of it, not to mention the large amount of tax and NI I am going to pay as well.

I would like to point out, that I (and approximately 20 others) have been waiting 3 years to get this money. That I have already worked for and earned (since 2003).

So don't talk to me about theft!

People can only give you advice on what you post.

Look again at the title of your post.

Student Loan, How Can I Avoid Paying it Back.

Say what you mean in futuje and stop being so defensive/pompous.

byrno

Jimmy

I am merely trying to find out if there is a way you can avoid/reduce the amount you pay to the SL Company - in particular what I would pay on back paid earnings from previous years - if getting owed money now in a lump sum.

I understand that If I had been paid the money at the time, I wouldve paid the SL at rates of the time. I suspect not, and think I will have to pay a large amount to SLC now, but just exploring my options.

Thanks
byrno

McKneff - perhaps he should have read the rest of the post then before getting on his moral high horse.

housebuyer_abc

JimmyTheWig wrote: »

Is it a question of how repayments are calculated?
Is there a chance that the OP will repay more with this money coming in as a lump sum now than if it had been paid on a monthly basis at the time?

The OP has no moral obligation to pay more just because the money has come in late.

I can't remember the exact figures but its 9% of everything over £18,000 or something like that.

If the money he earned in those five years was already over that threshold then he would pay no more now than then, if on the other hand we earned below £18000 (or whatever the ceiling was then) then he may be slightly overpaying.

Either way it would be a protracted and drawn out effort to convince the SLC not to take the payments. And ultimately it will drastically cut the OP balance so its good all round really.


(Oh and I agree the company that didn't pay deserve the thieving b****** description)

CLAPTON

you pay 9% of earning over 1250 per month
so if you were then earning over 1250 per month then it makes no difference if you pay it all in one go or if you paid it monthly over several years .. the total would be the same

If you were earning less than 1250 then tyou would need to check what the payment minimum was at that time.. I can't remember

In any event it's acedemic as the HMRC will tax you when you receive the money and not when it was earned.

vaporate

nervousftb wrote: »

That's not how it works, the SLC takes the money before it reaches your account, in the same way as tax and NI is taken. So no one is 'at it'.

Really?

On a slightly different topic, what would the SLC do if the person received a large sum of money? (e.g £25,000).

As far as I know, only your income is used for assessment. Legally anyway.